In the world of automobile insurance there is no better bargain than Underinsured Motorist Coverage, commonly referred to “UIM”. 
If you are seriously injured by a driver who carries only a minimum insurance policy, their coverage may run out long before your medical bills do. Underinsured motorist (UIM) coverage is the single best way for South Carolina drivers to protect themselves and their families from exactly that situation. Below, we explain what UIM coverage is, how it differs from uninsured motorist coverage, how much you can buy, how "stacking" works in South Carolina, and why you should never let anyone talk you out of it.
What Is Underinsured Motorist (UIM) Coverage?
Underinsured motorist coverage is optional insurance that you add to your own auto policy. It pays for your injuries and losses when the at-fault driver has liability insurance, but their policy is too small to cover the full extent of the harm they caused. In other words, UIM fills the gap between what the at-fault driver's insurance pays and what your damages actually total, up to the UIM limit you purchased.
This matters because South Carolina only requires drivers to carry minimum liability coverage of $25,000 per person and $50,000 per accident. A single serious injury, such as a broken bone requiring surgery, a spinal injury, or a traumatic brain injury, can generate hospital bills that exceed $25,000 within days. When that happens, the at-fault driver's minimum policy is quickly exhausted, and without UIM you may have no way to recover the rest.
UM vs. UIM: What's the Difference?
Uninsured motorist (UM) and underinsured motorist (UIM) coverage sound alike and are often bundled together, but they solve two different problems:
- Uninsured motorist (UM) coverage applies when the at-fault driver has no insurance at all, including in hit-and-run crashes. In South Carolina, UM coverage is required on every auto policy.
- Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance, but not enough to pay for your injuries. In South Carolina, UIM is optional, but your insurer is legally required to offer it to you.
Both coverages protect you from other people's choices about insurance, which you cannot control. If the driver who hits you has nothing, UM responds. If they have too little, UIM responds. Carrying both is how South Carolina drivers make sure a careless motorist's thin policy does not become your financial problem. You can learn more about your options after a crash from our South Carolina car accident lawyers.
Is UIM Required in South Carolina, and How Much Can You Buy?
UIM is not required in South Carolina, but insurers must offer it, and turning it down is one of the most costly mistakes a driver can make. You can purchase UIM coverage up to the limits of the liability insurance you already carry. For example, if you have $100,000 per person in liability limits, you can buy up to $100,000 in UIM coverage. If you want more UIM, the first step is to raise your liability limits, because your UIM cannot exceed them.
Do not let anyone talk you out of buying UIM coverage. The premiums are surprisingly reasonable for the protection you get, and it is one of the few coverages that protects you and your family rather than the other driver. When you review your policy, ask your insurance agent specifically about adding or increasing UIM.
How UIM Coverage Works After a South Carolina Crash
In South Carolina, UIM works as coverage that sits on top of the at-fault driver's liability insurance. After a crash, you first recover from the at-fault driver's liability policy up to its limits. If your damages exceed that amount, your own UIM coverage then pays the difference, up to your UIM limit.
Here is a simplified example. Suppose you are seriously injured and your total damages, medical bills, lost wages, and pain and suffering, come to $125,000. The at-fault driver carries only the $25,000 minimum. You would recover the $25,000 from their liability policy, and if you carried $100,000 in UIM coverage, your UIM could provide up to an additional $100,000 toward the remaining $100,000 in damages. Without UIM, your recovery would have stopped at $25,000.
This example is for illustration only. Every claim is different, and actual recovery depends on the specific facts, policies, and injuries involved. It is not a promise or prediction of any particular outcome.
Stacking UIM Coverage in South Carolina
South Carolina is one of the states that allows drivers to "stack" UIM coverage, which can dramatically increase the money available after a serious crash. If your household has more than one vehicle and each carries UIM, you may be able to combine, or stack, those coverages to raise your total available UIM.
There is one critical limitation to understand: you generally cannot stack your household UIM policies if you were driving a vehicle that has no UIM coverage of its own. That is why it is so important to make sure every vehicle in your household carries UIM, not just one or two. Stacking rules in South Carolina are nuanced and depend on your exact policies and your status as an insured, so it is worth having an attorney review your coverage. Our attorneys explain more in this FAQ on stacking UM/UIM coverage in South Carolina car crashes.
Why UIM Matters in Serious and Fatal Crashes
The more catastrophic the injury, the more UIM matters, because minimum policies are almost never enough to cover life-altering harm. The trial attorneys at Pracht Injury Lawyers have focused on serious personal injury and wrongful death litigation arising from car crashes, tractor-trailer crashes, motorcycle crashes, and pedestrian accidents. In each of these scenarios, UIM coverage expands the pool of money available to compensate the injured person or grieving family.
- Truck accidents often cause severe injuries, and while commercial policies are larger, UIM can still be essential when multiple victims share limited coverage.
- Motorcycle accidents frequently involve riders hit by uninsured or underinsured drivers, making a rider's own UM/UIM coverage one of the most important protections they can carry.
- Wrongful death cases can leave families facing enormous losses that a minimum liability policy cannot begin to address, and UIM helps close that gap.
Frequently Asked Questions About UIM Coverage in South Carolina
What is the difference between uninsured and underinsured motorist coverage in South Carolina?
Uninsured motorist (UM) coverage pays when the at-fault driver has no insurance at all, including hit-and-run drivers. Underinsured motorist (UIM) coverage pays when the at-fault driver has insurance, but not enough to cover your injuries. In South Carolina, UM coverage is required, while UIM coverage is optional but must be offered to you.
Is underinsured motorist coverage required in South Carolina?
No. UIM coverage is optional in South Carolina, but state law requires your insurer to offer it to you. Uninsured motorist (UM) coverage, by contrast, is mandatory. South Carolina's minimum liability limits are $25,000 per person, $50,000 per accident, and $25,000 for property damage, and you can buy UIM up to the amount of your own liability coverage.
How much underinsured motorist coverage should I buy?
You can purchase UIM coverage up to the limits of the liability insurance you carry. For example, if you carry $100,000 per person in liability coverage, you can buy up to $100,000 in UIM. Because UIM premiums are relatively inexpensive and serious injuries far exceed minimum policies, most attorneys recommend buying as much UIM as you can afford and raising your liability limits so you can buy more.
Can I stack underinsured motorist coverage in South Carolina?
Often, yes. South Carolina allows a qualifying insured to stack UIM coverage across the vehicles in the household to increase the money available after a serious crash. However, you cannot stack household policies if you were driving a vehicle that carries no UIM coverage of its own. Stacking rules are fact-specific, so an attorney should review your policies to determine what coverage applies.
Does my UIM coverage protect me as a passenger, pedestrian, or motorcyclist?
In many cases, yes. UIM coverage generally follows you and resident relatives of your household, so it can apply whether you were driving, riding as a passenger, walking as a pedestrian, or riding a motorcycle when an underinsured driver injured you. This is one reason UIM is so valuable, particularly for motorcyclists, who are frequently hit by drivers carrying minimum coverage.
Will my rates go up or can my insurer deny my UIM claim?
UIM is coverage you already paid for, and using it after a crash you did not cause generally should not raise your rates. That said, your own insurer can dispute or undervalue a UIM claim because paying it costs the company money. An experienced South Carolina attorney can handle the UIM claim, prove the full value of your damages, and push back if the insurer treats you unfairly.
Have Questions About UIM Coverage? Talk to a South Carolina Injury Lawyer
UIM coverage can be extremely confusing, and the stakes are high when you or a family member has been seriously hurt. If you have questions about insurance coverage, stacking, lawsuits, property damage, or any other aspect of a South Carolina automobile accident, I am happy to help. You can email me personally at chris@864law.com or call our office at 864-226-7222 (main line 864-712-7317).
We offer free consultations, and you will meet with me personally to discuss your case. We have handled injury and death cases in nearly every county in South Carolina, including Anderson, Greenville, Richland, Orangeburg, and Charleston. And remember: there is no charge to the client on any injury case unless we are successful in obtaining a verdict or settlement.
