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Uninsured motorist (UM) coverage pays out after a crash with an at-fault driver who doesnt have any insurance. Underinsured motorist (UIM) coverage pays out after a crash with an at-fault driver who has some insurance, but not enough to cover all costs.
Being underinsured means a person has insurance coverage, but the limits may not be high enough to cover the full expenses of a claim.
Uninsured motorist insurance protects you if youre in an accident with an at-fault driver who doesnt carry liability insurance. Underinsured motorist coverage steps in when youre in an accident with an at-fault driver whose liability limits are too low to cover the medical expenses of any injured people.
Uninsured motorist coverage, referred to as UM or UMBI, is a type of car insurance that can pay for medical expenses if you or your passengers are injured in an auto accident caused by: A driver who doesnt have any liability car insurance. A hit-and-run driver.
If the other driver caused the crash, you can likely still recover compensation for your damages. However, you will also face the consequences for not carrying the mandatory auto liability coverage in your state. Some states, including Louisiana, may limit your financial recovery due to the penalties you face.
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If you have unstacked insurance, your coverage is limited to the specific coverage limit for the vehicle in question. In the context of car insurance, stacking refers to combining the uninsured motorist (UM) coverage limits provided by multiple policies or to multiple insured vehicles.
You are in compliance with the law if you have liability insurance in the following minimum amounts: $25,000 for injury or death of one person in an accident. $50,000 for injury or death of more than one per- son in an accident. $20,000 for damage to property of another person.
A verdict has been served against State Farm Insurance Company, ordering the insurer to pay $6.5 million to a woman who had sued the company over unpaid collision injury claims.

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