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  • Paridhi Saboo

Underinsured/Uninsured Motorist Coverage

What is underinsured motorist coverage

Underinsured motorist (UIM) coverage is an optional coverage in an auto insurance policy that provides financial protection against accidents involving someone who does not have sufficient insurance coverage of their own.

How does underinsured motorist coverage work

Bella the Butler decided to purchase her auto insurance policy without underinsured coverage, thinking that it would be less expensive and more economical. Two months later while driving back home, her co-worker Gabriella carelessly crashed into her, resulting in several broken bones.

Gabriella, also being a butler, did not have enough coverage to pay for Bella’s medical bills and ended up paying only 10% of the total amount, the rest 90% was paid by Bella, out of pocket.

If Bella had underinsured motorist coverage, her insurance company would have paid for the difference amount and that would have been more economical and far less expensive.

Here at AZ Insurance Team, we don't sell auto insurance policies without UIM coverage, because we care about your financial safety more than the premium payments.

What is uninsured motorist coverage

According to the Insurance Information Institute ‘s 2021 report it appeared that 11.8% of the drivers in Arizona do not have auto insurance.

What would happen if you got severely injured in a car crash by a driver who doesn't have car insurance? You would have to pay for all the bills out of pocket.

Uninsured motorist coverage (UM) is an insurance coverage that pays when an at-fault driver causes a car accident, doesn’t have insurance and hurts you

In Arizona by law the minimum UM coverage amount is 25/50.

For example, you are in a car accident and the person at fault does not have an auto insurance. You incur $40,000 in injury-related bills and are unable to work for one month. Your uninsured motorist coverage would not only provide coverage for medical bills but would also cover for lost wages.

Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…


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