Know your limits
Use the worksheets in our policy pillar guide to log UM/UIM limits for every vehicle.
Roughly 14% of American drivers carry no insurance. Many others have only the state minimum, which barely covers a single emergency room visit. Uninsured/Underinsured Motorist coverage (UM/UIM) protects you when that driver hits you. Here is how to structure it.
1. UM vs UIM
- Uninsured Motorist (UM): Pays your injuries (and sometimes property damage) when the at-fault driver has no coverage or flees the scene.
- Underinsured Motorist (UIM): Pays the difference between the at-fault driver's liability limits and your actual damages.
- UMPD: In some states, UM also covers property damage; in others you need collision.
2. Matching or exceeding liability limits
Match your UM/UIM limits to your bodily injury liability at minimum. Better yet, exceed them or add an umbrella policy that includes UM/UIM protection. Otherwise you might collect less for your own injuries than strangers collect from you.
3. Stacking and multi-car households
Some states let you "stack" UM/UIM limits across vehicles. Example: three cars each carry 100/300 coverage. If you stack, you could access up to 300/900 after one accident.
- Check your declarations page or call your carrier to confirm stacking is enabled.
- Expect a modest premium increase in exchange for much larger limits.
- If stacking is banned in your state, consider higher single-vehicle limits instead.
Action step: write down your current UM/UIM limits, verify stacking status, and compare them to your health costs and income. Raise limits until they mirror what a serious injury would cost your family.