How does Pennsylvania Underinsured Motorist (UIM) Coverage work?
How Pennsylvania Underinsured Motorist Coverage Works
Every year, seriously injured accident victims in Pennsylvania discover that the driver who hit them doesn’t carry enough liability insurance to pay for all their damages. This is where Underinsured Motorist (UIM) coverage becomes critically important — and understanding how it works before you need it is far better than learning after an accident.
What Is UIM Coverage?
Underinsured Motorist coverage is an optional addition to your Pennsylvania auto insurance policy that protects you when you are injured by a driver whose liability insurance limits are lower than the full value of your damages. In simple terms: if the at-fault driver’s insurance isn’t enough to cover your losses, your UIM coverage steps in to make up the difference — up to your own policy limits.
How Does UIM Coverage Pay?
Here’s how it typically works in practice:
- You are injured in an accident caused by another driver
- You file a claim against the at-fault driver’s liability insurance
- The at-fault driver’s policy pays its limit — for example, $15,000 (Pennsylvania’s minimum)
- If your damages exceed that amount, you file a UIM claim with your own insurance company for the remaining amount, up to your UIM policy limit
For example, if your damages are $100,000 and the at-fault driver carried only $15,000 in liability coverage, your UIM coverage (if you have $100,000 in UIM limits) could pay up to $85,000 — bringing your total recovery closer to your actual damages.
UIM vs. Uninsured Motorist Coverage
UIM coverage and Uninsured Motorist (UM) coverage serve similar purposes but address different situations. UM coverage applies when the at-fault driver has no insurance at all. UIM coverage applies when they have some insurance — but not enough. Both types of coverage are important components of a well-structured Pennsylvania auto insurance policy.
Is UIM Coverage Required in Pennsylvania?
No. UIM coverage is optional in Pennsylvania, but it must be offered by your insurer. You can decline it in writing. Given that Pennsylvania’s minimum liability coverage is only $15,000 per person — an amount that falls far short of covering most serious injury claims — purchasing adequate UIM coverage is one of the most financially protective decisions you can make as a driver.
Stacking and UIM Coverage
If you have multiple vehicles on your policy, you may be able to stack your UIM coverage limits, multiplying your available coverage. This is one of the most valuable features available in Pennsylvania auto insurance. See our FAQ on stacking for more information.
Talk to an Attorney Before Settling a UIM Claim
UIM claims can be complicated — your own insurance company has financial incentives to minimize what it pays. An experienced Pennsylvania personal injury attorney can help you navigate the UIM process, document your full damages, and negotiate with your insurer to ensure you receive everything your policy entitles you to.
