You do everything right—you carry coverage, drive safely, and follow the rules. But what happens when someone hits you and they don’t have insurance—or not enough? That’s where underinsured and uninsured motorist coverage steps in to protect you.
Let’s break down what these coverages are, when they apply, and why you should consider having them.
What Is Uninsured Motorist Coverage (UM)?
Uninsured motorist coverage pays for your medical expenses, lost wages, and other damages if you’re hit by someone who:
- Doesn’t have auto insurance
- Leaves the scene (hit and run)
- Has insurance that won’t respond to your claim
Without UM coverage, you could be stuck paying your own bills—even when the accident wasn’t your fault.
What Is Underinsured Motorist Coverage (UIM)?
Underinsured motorist coverage applies when the at-fault driver has insurance—but not enough to cover your expenses.
For example:
- Your medical costs total $100,000
- The other driver’s policy only covers $25,000
- Your UIM coverage pays the $75,000 difference (up to your policy limits)
Do You Still Pay a Deductible?
If you have collision coverage, your insurer might first pay for your car repairs minus your deductible, then attempt to recover the cost—and your deductible—from the at-fault driver.
But for injuries, UM and UIM coverage kick in based on your policy limits—no deductible involved in most cases.
For more, see Progressive’s guide to uninsured motorist insurance.
How Much Coverage Should You Carry?
Many drivers underestimate this one. Consider choosing limits that match your liability coverage, such as:
- $100,000 per person
- $300,000 per accident
You may also be able to add UMPD (Uninsured Motorist Property Damage) for repairs, especially if you don’t carry collision.
Conclusion
So, what is underinsured or uninsured motorist coverage? It’s your financial backup plan when someone else drops the ball. Whether the other driver is completely uninsured or just doesn’t carry enough coverage, UM and UIM can protect you from major medical bills, lost wages, and more.Have questions about adding or adjusting your coverage? Contact Nebraska’s Insurance—we’ll help you make sense of it all.