What is UI and UIM? Is it different from UM and UMPD? The insurance discipline is filled with varying types of coverage, and it can be not very clear to unpack. Luckily, you have help — you can always talk to an agent.

Before you visit an office, however, here’s a brief overview of UI, UIM, and UMPD, when you need it, and how it can help.

First: What Are All These Definitions?

UI/UIM/UMPD, it all sounds very similar. They are identical, with some notable differences:

• UI/UM: Uninsured Motorist If you get hit by a motorist without any insurance, this coverage kicks in for bodily injuries you may incur.
• UIM: Under-Insured Motorist If you get hit by a motorist with too little insurance, this coverage kicks in for bodily injuries you may incur.
• UMPD: Uninsured Motorist Property If a motorist damages your vehicle without any insurance, this coverage kicks in.

Like other types of coverage, these coverages have caps, usually both per person and incident.

I Have Liability Insurance. Isn’t It Enough?

As a driver, your policy may already contain insurance for property damage and bodily injury. So, if you hit someone, you’re covered. That’s great. But what happens when someone hits you? That’s another story.

Let’s consider a driver named Beth. Beth gets in a collision with Tom. Tom isn’t covered at all. He just lost his job and canceled his coverage the other day, and he thought it would be safe enough to drive to the grocery store. Beth doesn’t have any type of UM/UIM, and she has $50,000 worth of damages. She’s going to have to take Tom to court if she wants to see that money; it’s money Tom doesn’t have.

Alternatively, let’s say Beth got into a collision with Tom the day before. He still has coverage. But his coverage has a limit of $20,000, and her damages are $50,000. Tom isn’t an uninsured motorist, but he is an underinsured motorist. His insurance will pay out $20,000, but Beth is still going to need to take him to court for the remaining $30,000.

If Beth had uninsured or underinsured motorist coverage, she would be able to get these damages covered (up to her UM/UIM insurance coverage cap).

Are Uninsured/Under-Insured Motorists That Common?

Absolutely. In WI, 14.3 percent of motorists are expected to be uninsured, and more of them are under-insured. What’s more, more people are likely to start becoming uninsured or under-insured as economic issues arise. With a recession likely on the way and almost 20 percent of individuals now unemployed, more people are going to be canceling their insurance altogether. And that doesn’t mean that they’re going to stop driving.

If you want to protect yourself today, you need UM/UIM/UMPD insurance. Luckily, it’s not that hard to get. You can contact an independent insurance agent today to find out about all the options that are available to you. Call Leonard Insurance today to schedule an appointment and to find out more about why it’s a good idea to maintain UM/UIM coverage.