Added-on UM-UIM Coverage
Added-on Uninsured/Underinsured Motorist (UM/UIM) coverage is an optional insurance policy that protects you if you are involved in an accident with a driver who either doesn't have insurance (uninsured) or doesn't have enough insurance to cover your damages (underinsured). This coverage steps in to pay for your medical bills, lost wages, and other expenses resulting from the accident, up to your policy's limits.
Example #1
For example, if you're hit by a driver who doesn't have insurance, and you have Added-on UM/UIM coverage, your own insurance can help cover your expenses.
Example #2
In another scenario, if the at-fault driver's insurance limit is insufficient to cover your medical bills and damages, your Added-on UM/UIM coverage can make up the difference.
Misuse
Misusing Added-on UM/UIM coverage could involve attempting to claim benefits when the at-fault driver does have adequate insurance to cover your damages. It's important to prevent misuse to maintain the integrity of the insurance system and ensure that coverage is used ethically and as intended.
Benefits
The benefit of having Added-on UM/UIM coverage is that it provides an extra layer of financial protection for you and your passengers in case of an accident with an uninsured or underinsured driver. This additional coverage can help alleviate the financial burden of medical expenses and repair costs, giving you peace of mind knowing you have added security.
Conclusion
Added-on UM/UIM coverage is a valuable addition to your insurance policy as it safeguards you against unforeseen accidents with uninsured or underinsured drivers. By having this coverage, you ensure that you are protected financially and can focus on your recovery without worrying about the other driver's insurance status.