UM/UIM (Uninsured / Underinsured Motorist)

Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages protect the policyholder when the at-fault driver lacks adequate liability insurance. UM applies when the at-fault driver has no insurance or cannot be identified, as in hit-and-run crashes. UIM applies when the at-fault driver has insurance but the policy limit is too low to cover the injured party's damages.

UM and UIM are first party coverages, meaning the injured person collects from their own auto policy under the UM/UIM endorsement. State law and policy language define the limits, the trigger thresholds, and the stacking rules. Some states require UM coverage; others make it optional with a written waiver.

For personal injury practices, UM and UIM claims are common because the United States has high rates of uninsured drivers (roughly 14 percent nationally, far higher in some states) and many at-fault drivers carry only state minimum limits that exhaust quickly on a serious injury. The firm makes a UM/UIM claim once the third party coverage is exhausted or unavailable.

UM/UIM proceeds are subject to medical liens, pharmacy liens, and subrogation just like third party proceeds. CreoRx's pharmacy lien is paid out of the UM/UIM recovery the same way it would be paid out of a third party settlement. The lien follows the money, not the insurance category.