This coverage, another ala carte item, is basically easy to understand. In this case, the name of the coverage is exactly what it implies.
If you are involved in an accident, and the driver at fault does not carry auto insurance, you must have Uninsured Motorist Coverage to be able to make a claim. This claim is actually made against your own insurance company. Now at this point, many people would cringe at the idea of making a claim against their own carrier; the feeling being that rates would go up if a claim is made. This is what the Insurance industry wants you to think, but it is far from the truth.
Under PA law, your insurance rates cannot go up simply because you made a claim. Only if you are at fault, may the company raise your rates. You also cannot be dropped by your carrier for making a claim (unless, this is your 4th or 5th claim, e.g.)
UM coverage is the only protection you may have against an uninsured driver. Regardless of the type of accident, regardless of the degree of fault, regardless of your injuries. If you do not have UM coverage, you will not be able to make a claim. This coverage extends to your family members or any other passenger in your vehicle.
Just like UM coverage, Underinsured (UIM) coverage is an ala carte item that must be selected by you in order for it to become part of your policy.
Let's say that you were involved in a terrible accident that resulted in severe injuries, i.e. broken bones, hospitalization, time missed from work, etc. Assume, for this example, that the driver at fault only carried minimum liability insurance ($15,000 for any individual) in his policy. Your injuries are obviously worth more than the minimum coverage. Unless you have UIM coverage in your policy, you will not be able to be compensated any more for your injuries; you're stuck with the $15,000.
Once again, this would be a claim made against your carrier and once again your rates cannot be increased just for making this claim.
UM/UIM coverage should go hand in hand. The cost for the inclusion of these coverages in your policy is not that expensive. With so many uninsured drivers and minimum policies in effect, this is the only proper way to fully cover yourself and your family. The UM/UIM coverage limits can be as high as your liability limits, or anywhere lower, as you choose.
