Excess UM-UIM Coverage

Excess UM/UIM Coverage, short for Excess Uninsured/Underinsured Motorist Coverage, is an additional layer of protection that you can opt for in your auto insurance policy. This coverage comes into play when the at-fault party in an accident doesn't have enough insurance to fully cover your expenses.

Example #1

For example, let's say you're in an accident caused by an underinsured driver, and their insurance only covers $20,000 of the $30,000 in medical bills you incur. If you have Excess UM/UIM Coverage of $10,000, your policy would kick in to cover the remaining $10,000.

Example #2

Another example is if you have Excess UM/UIM Coverage and you're hit by an uninsured driver. Your coverage would step in to cover your expenses up to the limit you've chosen.

Misuse

Misuse of Excess UM/UIM Coverage could occur if someone tries to claim these benefits when the at-fault party has adequate insurance to cover the damages. This misuse can lead to increased premiums for everyone as it puts more strain on the insurance system.

Benefits

Having Excess UM/UIM Coverage provides an extra financial safety net for you and your passengers in case of an accident with an uninsured or underinsured driver. It ensures that you are not left with significant expenses due to someone else's lack of insurance.

Conclusion

Excess UM/UIM Coverage is a valuable addition to your auto insurance policy, offering you peace of mind and financial protection in situations where the at-fault driver lacks sufficient insurance. It's important to understand the limits and benefits of this coverage to make informed decisions about your policy.

Related Terms

Uninsured Motorist CoverageUnderinsured Motorist CoverageLiabilityPolicy Limit