FAQ > Personal Injury and Insurance > What is underinsurance?
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Underinsurance (“UIM”) coverage provides coverage that makes up the difference between the amount of your damages and the amount of insurance coverage of someone who caused your injuries.
For example, assume you carry a State Farm policy on your automobile with $100,000 in UIM coverage. Another driver (insured by Allstate and carrying a liability policy limit of $25,000) fails to stop at a red traffic light and collides with your car. If your damages amount $73,000, Allstate will pay $25,000 and State Farm will pay the remaining $48,000.