What is UM or UIM?
Uninsured or underinsured motorist coverage can pay for damages to you and your passengers when there is an accident and the other driver is both legally responsible for the accident and considered "uninsured" or "underinsured."
An uninsured driver is someone who did not have any insurance, had insurance that did not meet state-mandated minimum liability requirements, or whose insurance company denied their claim or was not financially able to pay it. A hit-and-run driver also counts as uninsured.
An underinsured driver is someone who met minimum legal financial responsibility requirements, but did not have payment limits high enough to cover the damage they caused. In these cases, UM or UIM can pay you for your damages.
Is UM/UIM required?
In Oklahoma, the insurance company is legally obligated to offer you certain amounts of UM/UIM coverage and if you don’t want it you must decline in writing. If you purchase uninsured/underinsured motorist protection, your UM/UIM payment limits usually must comply with the state minimum but can't exceed your liability limits.
Why would you want it?
Compton Law has handled many automobile accidents and the vast majority of those did not have adequate coverage in place to totally compensate for the injuries sustained. Even worse, should you get into an accident with someone who is driving without insurance and you failed to purchase UM coverage, you would probably only receive a very small amount under the medical payments protection of your insurance policy. UM insurance is a necessity and something you do not want to be caught without.
It's usually relatively cheap to add uninsured/underinsured motorist protection to your car insurance policy, especially considering the amount of protection it offers. It could pay your medical bills, lost wages, and pain and suffering.
Underinsured motorist protection
Underinsured motorist protection pays you for damages that exceed the payment limits carried by a driver who is considered underinsured. UIM will only pay up to the limits of your policy after subtracting the amount paid by the other driver's insurance. This means that the amount listed as your UIM limit is the total amount paid by both insurance companies, not the additional amount your company will pay after the other driver's company pays. Both UM and UIM apply to you and any passengers in your car, and to you and others listed on your insurance policy (including family members) when in other cars.