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Add-On UM-UIM Coverage

Add-On Uninsured/Underinsured Motorist (UM/UIM) Coverage is an optional insurance policy that provides protection for you and your passengers in case of an accident with a driver who doesn't have insurance or lacks sufficient insurance to cover your damages.

Example #1

If you have Add-On UM/UIM Coverage and you're involved in an accident where the at-fault driver doesn't have insurance, your policy can help cover your medical expenses and damages.

Example #2

Imagine you're hit by a driver who has insurance, but their coverage limit is not enough to fully compensate you for your injuries and vehicle damage. With Add-On UM/UIM Coverage, your policy can step in to cover the remaining costs.

Misuse

Misusing Add-On UM/UIM Coverage can occur when someone tries to file a claim under this policy for an accident where the other driver is not at fault and has sufficient insurance. This misuse undermines the purpose of the coverage, which is meant to protect against uninsured or underinsured motorists.

Benefits

The benefit of Add-On UM/UIM Coverage is that it offers an additional layer of financial protection for you and your passengers, ensuring you are not left with significant expenses in the event of an accident caused by an uninsured or underinsured driver.

Conclusion

Having Add-On UM/UIM Coverage can provide peace of mind knowing that you have extra protection in situations where the other driver cannot fully cover your costs. It aligns with CAP's mission of empowering consumers to make informed decisions and advocating for fair practices in the insurance sector.

Last Modified: 4/29/2024