Know exactly what your premiums cover
Thank you for signing! Every signature matters and we couldn't do it without you! Wyoming is not the only state with this offset law. Check with your agent. Make sure you fully understand. What happened to us can happen anywhere at anytime.
A brief explanation of Offset Law and a few states that abide by it.
Common Approaches to UIM Offsets
Gap Theory (Offset States): In these jurisdictions, UIM coverage fills the "gap" between the at-fault driver's policy limit and your UIM limit. If you have a $100,000 UIM limit and the at-fault driver pays $30,000, your UIM insurer typically only pays up to the difference ($70,000 total from your policy), rather than paying on top of the other driver's policy. Examples include:
Maryland (unless Enhanced UIM is elected)
Excess / Floating Layer Theory (Non-Offset States): In these states, UIM acts as a true secondary or floating layer that stacks or sits above the at-fault driver's limits for uncompensated damages (up to policy maximums) without a direct dollar-for-dollar credit against your coverage limits. Examples include:
Washington