UM and UIM Coverage - QUIZ

A type of insurance coverage that protects you in case of an accident with an uninsured or underinsured driver.

The main purpose of UM/UIM coverage is to provide compensation if the other driver's insurance is inadequate or nonexistent.

A UM claim occurs when the at-fault driver has no insurance or insufficient coverage to cover your losses.

UIM coverage applies when the at-fault driver's insurance coverage is less than the amount of your damages.

UM coverage is for accidents where the other driver has no insurance and is at fault. UIM is for accidents where the at-fault driver's insurance is insufficient to cover your losses.

You can waive UM/UIM coverage in writing, following the insurance code requirements.

UM/UIM coverage typically includes your spouse, relatives living in your household, and even friends who have your permission to drive your vehicle.

The maximum amount you can recover from a UM/UIM claim is usually capped by the limits of your own UM/UIM policy.

The 'anti-stacking' rule prevents you from combining multiple UM/UIM policies to exceed the highest policy limit.

UM/UIM coverage typically applies if you are a passenger in someone else's vehicle, as long as you have coverage on your own policy or the vehicle has it.

If you own an uninsured vehicle but live with someone who has UM/UIM coverage, you may be covered under their policy depending on the specific circumstances.

Strong medical records are important for pursuing UM/UIM claims because they demonstrate the extent of your injuries and the need for compensation.

Liability insurance, typically required by law, covers damages you cause to others in an accident.

Collision coverage, typically optional, covers damage to your own vehicle in an accident, regardless of who is at fault.

Comprehensive coverage, also optional, protects your vehicle against damages other than collisions, such as theft, fire, and natural disasters.

Personal Injury Protection (PIP) coverage, often required in certain states, provides benefits like medical expenses and lost wages following an accident, regardless of fault.

A deductible is the amount you pay out of pocket for a covered claim before your insurance kicks in.

Premiums are regular payments you make to maintain your insurance coverage.

The insured is the person or entity covered by the insurance policy.

The insurer is the insurance company that provides the insurance coverage.

A claim is a request for compensation from your insurance company for a covered loss.

The policy limits are the maximum amounts your insurance will pay for covered losses.

A tort is a civil wrong resulting in harm to another person, property, or reputation.

Negligence is a failure to exercise the care that a reasonable person would exercise in a similar situation.

Comparative negligence is a legal doctrine where the plaintiff's negligence is considered when determining their damages.

Statute of limitations is a legal deadline for filing a lawsuit.

The amount of money awarded to the plaintiff in a lawsuit to compensate them for their losses.

Subrogation is the right of an insurer who paid a claim to step into the insured's shoes and pursue legal action against a third party.