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Uninsured/underinsured motorist bodily injury (UM/UIM BI). Protects you if you're hit by a driver who either has no insurance or insufficient coverage to pay for your medical costs.
Typically, the payout is not more than the minimum liability limits and the negligent driver remains responsible for reimbursing the state's fund. In the United States, the definition of an uninsured/underinsured motorist, and corresponding coverages, are set by state laws. In some states it is mandatory.
The insurance company will ordinarily pay the judgment, up to the policy limits, once a court determines that an uninsured motorist was at fault. Some states' laws also allow additional insurance coverage to the insured policyholder through policy stacking provisions, whereby a claim may be made against multiple uninsured motorist policies.
Simply, this means that for a 50/100/25 ratio, if you are at fault, up to $50,000 gets paid out for each person’s injury, $100,000 is the maximum total payout per accident and $25,000 is the ...
Illustration of the partial payout of Sum Insured against probability of occurrence. Condition of average (also called underinsurance [1] in the U.S., or principle of average, [2] subject to average, [3] or pro rata condition of average [4] in Commonwealth countries) is the insurance term used when calculating a payout against a claim where the policy undervalues the sum insured.
Uninsured/underinsured motorist coverage. Protects you if you're hit by a driver who either has no insurance or whose liability coverage limits are too low to pay for your damages.