minimum amount required by their state, which often isn’t enough to cover the damage. UIM can cover bodily injury and/or property damage. Bodily injury (UIMBI) coverage is required by some states, but property damage (UIMPD) coverage is required less often and is not even offered in some states. Uninsured motorist coverage can be a little confusing, so I want to make sure you understand this point: in some instances, if the other driver is at fault, your coverage limits must be higher than theirs to get benefits. How does this work? Here’s an example where the other driver is fully at fault: • The other driver has the state minimum of $40,000 bodily injury liability coverage. • You have underinsured motorist bodily injury coverage of $20,000. • You got badly injured in the accident, and your medical costs reach $75,000. Since your UIMBI is less than the other driver’s coverage, you would get $40,000 from their insurance, but you wouldn’t get the extra $20,000 from your UIM. However, if your UIMBI coverage is more than the other driver, you would collect for the damages: • The other driver has the state minimum of $40,000 bodily injury liability coverage. • You have underinsured motorist coverage of $75,000. • You got badly injured in the accident, and your medical costs reach $75,000. As in the other situation, the other driver’s insurance would cover the $40,000, and your UIM would cover the difference. Of
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