Though all drivers are required by law to have car insurance, there are still a shocking number of motorists driving without coverage. In fact, one in eight drivers doesn’t have insurance, according to the Insurance Information Institute. If you’re hit by one of these uninsured (or underinsured) drivers, having unstacked uninsured motorist (UIM) coverage can help pay for your damages. Here’s what you need to know about this important type of coverage.
What Is Unstacked Uninsured Motorist Coverage? Unstacked UIM coverage is an optional add-on to your car insurance policy that can help pay for your damages if you’re hit by an uninsured or underinsured driver. Unlike traditional uninsured motorist (UM) coverage, unstacked UIM insurance does not “stack” on top of your liability coverage limits— meaning it 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. The remaining $10,000 would need to be covered by another source, such as your health insurance or through a personal injury lawsuit against the at-fault driver. It’s important to note that UIM coverage only kicks in after you’ve exhausted the at-fault driver’s liability limits. So, if 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 who can help you navigate the process and fight for the full compensation you deserve.
If you’ve been 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.
Ready to get coverage? Take a look around our site to find out more about what we have to offer, or contact us to receive a free quote. Let’s work together to help your business succeed!
