Underinsured Motorist Coverage

Underinsured Motorist Coverage

In most states, drivers have a mandate to carry a minimum amount of insurance coverage, and many drivers stick to the minimum to save money.

They may have one of the legal requirements to drive but what happens when they hit you? The minimum bodily injury and property liability insurance required in that state, the one the driver-at-fault carries, may not be enough to pay for your medical bills and auto repair costs which can be very expensive.

You can protect yourself from severe financial risk by adding Underinsured Motorist Coverage to your insurance policy.


• If your medical expenses, lost income, and other accident-related expenses exceed the limits of the driver at fault’s policy, the Bodily Injury (BI) portion of your underinsured motorist coverage may cover for the balance, up to your selected limit.
• The Bodily Injury (BI) portion of your underinsured motorist coverage may also pay the balance for the medical expenses, lost wages and other injury-related expenses of your passengers in a covered incident, or anyone who is driving your car with your permission at the time of the accident.
• If the repair costs of your vehicle and other properties exceed the limits of the underinsured driver’s policy, the Property Damage (PD) portion of your underinsured motorist coverage will help pay some of those expenses in a covered incident.

How does it work?

Suppose you are hit by an underinsured driver who only carries the state required minimum of, say for example – $15,000 per person for bodily injury, and $10,000 per accident property damage. If all your medical expenses ballooned up to $50,000 and your car repair bill reached up to $25,000, you can claim the balance against your insurance provider, up to the limit of your policy’s coverage.

In some states, when the policy limit of the driver-at-fault is not enough to cover your incurred medical expenses and repair bills, that’s when the driver is considered uninsured. On the other hand, in some states, when both you and the driver-at-fault carry the same policy limit, you may not be able to collect any additional amount under your insurance policy even if your accident-related expenses are more than the other person’s policy limits.

Uninsured and Underinsured Motorist Insurance

In some states, underinsured motorist coverage and uninsured motorist coverage can be sold as a single package. The uninsured motorist coverage, on the other hand, helps pay when you have acquired property damages and suffered physical injuries from an uninsured driver or a hit-and-run driver. Considered as a single coverage, you pay for a single premium for both uninsured and underinsured motorist coverages.

In other states, these two remain separate, and you pay separate premiums. Depending on the state where you live, underinsured motorist coverage is sometimes required and sometimes, optional. It’s important to note that there are also states where this type of coverage is not available.

Talk to an insurance specialist to learn more about underinsured motorist coverage. This added protection can lessen your concerns when it comes to accidents and can give you peace of mind. Get a free quote today!