What is UIM Coverage and Why do you need it?


Uninsured motorist coverage is an optional type of insurance that pays for damages and injuries that a driver may incur in an accident caused by another driver who does not have insurance.

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In Montana, drivers are required to have auto insurance in order to legally operate a vehicle on the road. However, there are some drivers who choose to drive without insurance. This can lead to a variety of problems if they are involved in an accident. That is why uninsured and underinsured motorist (UIM) coverage is an important type of insurance that drivers should purchase.

Insurance coverage requirements vary depending on the state. In Montana you are required to have bodily injury and property damage coverage. The Montana Motor Vehicle Division provides a breakdown of these policy requirements.  

Photo of a black car after a car crash. The hood is crushed. This photo is on the personal injury page to help explain what personal injury is, and how the lawyers at Rasmusson Law can help.

UIM Coverage Defined

Uninsured motorist coverage is an optional type of insurance that pays for damages and injuries incurred in an accident caused by another driver who does not have insurance. This coverage can also apply in hit and run accidents where the other driver cannot be identified or found. Even if the other driver is found, but they don’t have enough insurance to cover your expenses, this coverage can still apply.

Underinsured motorist coverage is insurance that helps pay for damages and injuries if the at-fault driver’s insurance isn’t enough to cover your costs. It fills the gap when the other driver’s coverage falls short. This coverage is also optional.

Importance of UIM Coverage

It is important to note that uninsured and underinsured motorist coverage is not required in the state of Montana. But it is highly recommended for drivers to consider purchasing this coverage to protect themselves in case of an accident with an uninsured or underinsured driver. The Insurance Information Institute estimates that in 2022, 8.8% of Montana drivers are uninsured.

Uninsured and underinsured motorist coverage can provide protection in case of an accident with an uninsured or underinsured driver. Although it is not a legal requirement, this coverage can save you from a significant financial burden in case of an accident. It’s no secret that hospital bills can get very pricy. This doesn’t include any further treatment you may need. Having UIM coverage offers an additional source of compensation to help you through an already tough time.

It is recommended to read your policy carefully and discuss it with your insurer to ensure you have adequate coverage.

Things to Keep in Mind

When purchasing this coverage, you should be aware that the coverage amount will vary depending on the plan. Montana law requires insurers to offer Uninsured/Underinsured Motorist coverage with limits that match the policyholder’s liability coverage. However, you will have the option to purchase additional coverage if you want to.

It is also worth mentioning that if you’re in a car accident and the other driver is at fault, you have the right to sue them for damages. Even if the other driver doesn’t have insurance, you can still file a claim against them. However, in this case, if you don’t have uninsured motorist coverage, you’ll be left to pay for any damages and medical expenses yourself, which can be a significant financial burden.

If you’ve been involved in an auto accident or a hit-and-run accident, you can always contact an attorney for assistance. Having someone with experience in dealing with insurance companies and different coverage types can completely change a claim.

Contact Rasmusson Law Offices, PLLC in Missoula, Montana for a free consultation.