How is Underinsured Motorist Coverage Different from Uninsured Motorist Coverage?

We have a lot of people come to our office after a car accident where the other driver either did not have any insurance, or where they did not have enough insurance. Sometimes, there is nothing we can do to help. But what usually helps is if our client has uninsured or underinsured motorist coverage. This is often called UM/UIM coverage.

What does it mean? Uninsured motorist coverage protects you if you are hit by someone who does not have insurance. You can make a claim for your personal injuries against your own insurance policy just as if you were making an insurance claim against the other driver. In order to do that, though, you must first show that the other driver had no insurance.

Now if the other driver has insurance, but it is not enough insurance to pay for your damages, you can make a claim against your underinsured motorist coverage to make up the difference. Before your insurance will pay, however, you must first exhaust (or use up ALL of the other driver's coverage).

So the difference is whether someone has no insurance at all (uninsured motorist coverage applies) and whether someone has insurance, but not enough (then underinsured motorist coverage applies).

Pete Clancy is the founding partner of Clancy & Diaz, LLP, a father, a husband and an Oakland personal injury attorney. In 2010, 2011 and 2012 he was named a Rising Star by SuperLawyers Magazine for Northern California (stay tuned for 2013!!).