Lafayette – November 01, 2026 -- If the driver who hits you carries too little insurance, underinsured motorist (UIM) coverage on your own policy may cover the gap, but state law and policy terms determine how much you can collect.
UIM applies when the at-fault driver has insurance, but not enough
Chuck Clark, an insurance expert in Lafayette, Indiana, explains the coverage in a new HelloNation article. UIM addresses cases where the at-fault driver's liability limits fall short. Uninsured motorist protection generally applies when that driver has no insurance at all.
Serious injuries can produce medical bills and lost income that exceed another driver's limits. Depending on the policy and state law, UIM benefits may cover those losses and pain and suffering. Coverage may also reach household family members, passengers, and certain incidents involving pedestrians or cyclists.
State rules and policy limits change what UIM pays
Payment calculations vary. Some policies factor in the at-fault driver's liability limits when working out UIM benefits, while other arrangements pay on top of that driver's coverage. Limits also set the maximum per person and per accident. Stacking, where permitted, combines eligible limits across vehicles or policies.
Notify your insurer before accepting a settlement
Claims typically start with payment from the at-fault driver's insurer, and the injured person's own policy may then provide additional benefits. Some policies require the insurer's consent before you settle, and ignoring that term could affect your access to benefits.
Health insurance may pay certain medical expenses, but it generally does not replace lost wages or compensate for pain and suffering.