What is Pennsylvania Underinsured Motorist (UIM) Coverage?

Pennsylvania UIM Coverage: Protection When the Other Driver’s Insurance Falls Short

Underinsured Motorist (UIM) coverage is a type of auto insurance that protects you when you’ve been injured by a driver who has liability insurance — but not enough of it to fully compensate you for your losses. Pennsylvania law requires insurers to offer UIM coverage to all policyholders, though you may waive it in writing. Given the serious nature of many car accidents and the frequency with which injury costs exceed minimum policy limits, UIM coverage is one of the most important protections you can carry.

How Does UIM Coverage Work in Pennsylvania?

Pennsylvania requires drivers to carry a minimum of $15,000 per person / $30,000 per accident in liability coverage. These limits are often completely inadequate in cases involving significant injuries. If you’re badly hurt — requiring surgery, hospitalization, or long-term care — and the at-fault driver carries only the minimum, you could be left with $15,000 to cover expenses that run into the hundreds of thousands.

Here’s how UIM coverage fills the gap:

• The at-fault driver’s liability coverage pays first, up to their policy limit
• Your UIM coverage then pays the difference between what you received and what you’re actually owed, up to your UIM limit

For example: You suffer $200,000 in damages. The at-fault driver carries $50,000 in liability coverage. Your UIM coverage limit is $100,000. The at-fault driver’s insurer pays $50,000. Your UIM coverage pays an additional $100,000 — leaving a $50,000 gap, but dramatically reducing your out-of-pocket exposure compared to having no UIM coverage at all.

Stacked vs. Unstacked UIM in Pennsylvania

Pennsylvania allows drivers to purchase stacked UIM coverage, which multiplies your UIM limits across the number of vehicles on your policy or household policies. If you have two vehicles each with $100,000 in UIM coverage, stacking gives you access to $200,000 in UIM protection per accident. Insurers must offer stacking and require a written waiver if you choose unstacked coverage.

Why UIM Coverage Matters in Erie-Area Accidents

Serious accidents on Erie-area highways, including I-90, I-79, and Route 19, frequently result in injuries that generate medical bills and wage losses far exceeding minimum liability limits. The attorneys at Purchase, George & Murphey, P.C. regularly represent clients whose only adequate source of recovery was their own UIM coverage. If you’ve been injured and aren’t sure whether your policy provides sufficient UIM protection, contact our Erie office for a free consultation.