Underinsured Motorist (UIM) Coverage
Spanish: Cobertura de Motorista Con Seguro Insuficiente (UIM)
Definition
Underinsured Motorist Coverage, abbreviated UIM, refers to an optional Texas auto insurance add-on that pays the difference when the at-fault driver carries some liability insurance but not enough to cover all of the insured's medical bills and vehicle damage. UIM is especially valuable in Texas because the state minimum of 30/60/25 often falls short of real medical and repair costs in a serious accident. UIM and uninsured motorist are typically sold together as UM/UIM, a combined endorsement under Texas Insurance Code §1952.101. The UIM limit is commonly set equal to the insured's own liability limit, and the coverage triggers only after the at-fault driver's liability has been exhausted. UM/UIM bodily injury and UM/UIM property damage each carry separate limits. Carriers must offer UIM on every Texas policy and obtain a written rejection to decline it.
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