Understanding Underinsured Motorist Insurance

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When you’re on the road, you’re always at risk of getting into an accident. While you can take measures to drive safely and defensively, you can’t control what other drivers do. Even if you have car insurance, you may not be fully protected if you get into an accident with someone who is underinsured. That’s where underinsured motorist insurance comes in.

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What is underinsured motorist insurance?

Underinsured motorist insurance is a type of car insurance that can provide additional coverage if you get into an accident with someone who doesn’t have enough insurance to cover the damages. If you’re not at fault in the accident, the other driver’s insurance should cover the damages. However, if their insurance isn’t enough to cover the full cost of the damages, your underinsured motorist insurance can help make up the difference.

Underinsured motorist insurance is not required in every state, so it’s important to check your local laws and regulations. Even if it’s not required, it’s still a good idea to consider adding this type of coverage to your policy.

How does underinsured motorist insurance work?

Underinsured motorist insurance can help cover the cost of damages if you get into an accident with someone who doesn’t have enough insurance to cover the full amount. For example, if you have $50,000 in damages and the other driver only has $30,000 in coverage, your underinsured motorist insurance can help make up the difference.

Here’s an example of how underinsured motorist insurance works:

Scenario
Cost of Damages
Other Driver’s Insurance Coverage
Your Underinsured Motorist Coverage
Total Coverage
Example 1
$50,000
$30,000
$20,000
$50,000
Example 2
$100,000
$50,000
$50,000
$100,000

It’s important to note that underinsured motorist insurance will only kick in if the other driver is at fault and doesn’t have enough insurance to cover the damages. If you’re at fault in the accident, your insurance will be responsible for covering the damages.

Do I need underinsured motorist insurance?

While it’s not required in every state, underinsured motorist insurance can be a smart choice for many drivers. Here are some reasons why:

1. Protects you from underinsured drivers

If you get into an accident with someone who doesn’t have enough insurance to cover the damages, you could be left paying for the rest out of your own pocket. Underinsured motorist insurance can help protect you from this situation.

2. Provides peace of mind

Knowing that you have extra protection in case of an accident can give you peace of mind while you’re on the road.

3. Can be relatively inexpensive

Adding underinsured motorist insurance to your policy may not cost much more than your current premiums. It’s worth getting a quote to see how much it would cost.

4. Required in some states

In some states, underinsured motorist insurance is required by law. Check your local laws and regulations to see if you need this type of coverage.

FAQ

What’s the difference between underinsured and uninsured motorist insurance?

Uninsured motorist insurance provides coverage if you get into an accident with someone who doesn’t have any insurance at all. Underinsured motorist insurance provides coverage if you get into an accident with someone who has insurance, but not enough to cover the damages.

How much underinsured motorist coverage do I need?

The amount of underinsured motorist coverage you need depends on a variety of factors, such as your state’s requirements, your budget, and your risk tolerance. It’s best to speak with an insurance agent to determine how much coverage you need.

Is underinsured motorist insurance expensive?

Underinsured motorist insurance can be relatively inexpensive, especially when compared to the cost of damages and medical bills that could result from an accident. It’s worth getting a quote to see how much it would cost to add this type of coverage to your policy.

Do I need both uninsured and underinsured motorist insurance?

It’s not required to have both types of coverage, but it could provide you with extra protection in case of an accident. It’s best to speak with an insurance agent to determine what type of coverage is right for you.

Can I add underinsured motorist insurance to my policy at any time?

It’s usually possible to add underinsured motorist insurance to your policy at any time, but it’s best to speak with an insurance agent to determine the specifics.

Overall, underinsured motorist insurance can provide additional protection and peace of mind while you’re on the road. Consider adding this type of coverage to your policy to ensure that you’re fully protected in case of an accident.

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