What does UIM mean?

The acronym UIM, in the insurance field, refers to an uninsured/underinsured motorist. Some states require you to carry UIM coverage is specific amounts, such as New Jersey, which requires you to carry 15/30/5 UIM insurance in addition to the other state auto insurance requirements. This means that you must have $15000 for UIM bodily injury, with a required limit of $30000 per incident, as well as $5000 in property damage liability. With that said, keep in mind that UIM insurance is designed to protect you as well as others, and these limits would apply to you and your passengers if you were hit by an uninsured motorist just as well as they would apply to you being underinsured for a particular claim in which you were at fault.

Another important factor for your consideration is that having a state specified minimum requirement does not absolve you of costs over the limits. If your state requires a 10/20/5 and the person you hit sustains bodily injuries totaling $15000, you will be responsible for paying the remaining amount out of pocket. TO avoid this situation, set your limits high enough to cover most situations, usually much higher than the minimums required by your state.