This bodily injury coverage pays for injuries, medical costs, rehabilitation, pain and suffering and any funeral costs suffered by you and/or your passengers in an accident caused by a driver that has no insurance or insufficient insurance.
It is applicable only if the other driver is at fault. You must have documentation in the form of written proof that the driver is uninsured or underinsured. This could be a letter from the other party stating that they are uninsured/underinsured, or a police report which states that the other party is uninsured/underinsured and at fault. Some states require/mandate that you have this coverage. Some states offer UIM separate from UM. Limits can be expressed in Single Limits or Split Limits.
June 24, 2011