Underinsured Motorist Coverage
An underinsured driver is someone who has auto insurance, but does not have enough coverage to cover all the damages they caused in an incident or accident.
Underinsured Motorist Insurance (UIM) is the coverage that supports the shortfall between where the at fault parties insurance runs out and the additional damages need to be covered. Sometimes this coverage can be a bit confusing and typically an example will better illustrate how this coverage works:
- Your Damages: $50,000
- The Person who hit you maximum coverage: $40,000
- Underinsured Motorist Coverage (on your policy): Covers the balance of $10,000 (usually offset by a small deductible).
Typically, an Underinsured Motorist Coverage is not a mandatory coverage but it is highly recommended to maintain maximum coverage. Illinois Vehicle can get you the coverage you need for auto insurance in Chicago!