All drivers must have car insurance according to law. Still, there is a shocking number of motorists driving without coverage. In fact, one in eight drivers doesn’t have insurance, according to the Insurance Information Institute. Unstacked uninsured motorist coverage (UIM) can help pay for your damages if you’re hit by an uninsured driver. Here’s what you need to know about this important type of coverage.
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What Does Unstacked Uninsured Motorist Coverage Mean?
Unstacked UIM coverage is an optional add-on to your car insurance policy. It can help pay for your damages if you’re hit by an uninsured or underinsured driver. Traditional uninsured motorist (UM) coverage doesn’t “stack” on top of your liability coverage limits. Meaning, unstacked UIM insurance pays out separately from your liability policy.
How Does Unstacked UIM Coverage Work?
If you’re in an accident with an uninsured or underinsured driver and you have unstacked UIM coverage, your own insurance company will help pay for your damages up to the limit of your policy. So, if you have $50,000 in UIM coverage and you sustain $60,000 in damages, your insurer will only cover $50,000. You would need to cover the remaining $10,000 from another source. Like your health insurance or a personal injury lawsuit against the at-fault driver.
You should note that UIM coverage only kicks in after you’ve exhausted the at-fault driver’s liability limits. So, imagine, the other driver had $25,000 in liability coverage and your damages totaled $40,000. Their insurer would pay the first $25,000 and your UIM would cover the remaining $15,000.
UIM claims can be tricky and complex. That’s why it’s important to have an experienced car accident attorney on your side. This will help you navigate the process and fight for the full compensation you deserve.
If you get involved in a car accident with an uninsured or underinsured driver, having unstacked uninsured motorist coverage can help pay for your damages. Though it’s not required by law like liability insurance is, it’s still a good idea to consider adding this type of protection to your policy so you’re fully covered in the event of an accident.
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