With so many different types of car insurance coverage available, it can be overwhelming to understand which options you need and which you can skip. One type of coverage that often goes overlooked but can be incredibly important in certain situations is underinsured motorist coverage. If you’re not sure what this coverage is or whether you need it, you’re not alone. In this article, we’ll explore everything you need to know about how underinsured motorist coverage works, including its benefits, limitations, and potential drawbacks. By the time you’re finished reading, you should be able to make an informed decision about whether this coverage is right for you.
What is Underinsured Motorist Coverage?
Underinsured Motorist Coverage is a type of car insurance that is designed to protect you financially in case you get into an accident with a driver who has inadequate insurance to cover the expenses.
In other words, if you get into an accident with another driver who is at fault, but their insurance limits aren’t enough to cover the damages and expenses that result from the accident, underinsured motorist coverage can help fill the gap and cover the rest of the costs.
Underinsured motorist coverage is part of your own car insurance policy, and it’s typically an optional coverage that you can add to your policy for an additional cost.
It’s important to note that underinsured motorist coverage is different from uninsured motorist coverage. While underinsured motorist coverage is intended to cover you in the event of an accident with a driver who does have insurance, but their limits are not high enough, uninsured motorist coverage is designed to protect you in case you get into an accident with a driver who doesn’t have any insurance at all.
Underinsured motorist coverage can be a valuable addition to your car insurance policy, as it can help ensure that you’re not left with a financial burden after an accident that is caused by another driver who doesn’t have sufficient insurance to cover the damages.
How Does Underinsured Motorist Coverage Work?
Underinsured Motorist Coverage provides protection to drivers in the event that they are involved in an accident with someone who has insufficient insurance. This type of coverage is particularly useful in situations where the at-fault driver does not have sufficient coverage to pay for the damages sustained by the other driver.
So, how does Underinsured Motorist Coverage work? First, it’s important to understand that this coverage is typically an add-on to your existing auto insurance policy. It’s designed to provide additional coverage beyond what the at-fault driver’s policy can provide.
When you purchase Underinsured Motorist Coverage, you’ll be able to select a coverage level that meets your needs. The coverage limits will be per person and per accident. In the event that you or another person covered by your policy is in an accident, and the at-fault driver’s insurance policy cannot fully cover the costs of the damage, your Underinsured Motorist Coverage will kick in to cover the remaining amount, up to the limits that you have selected.
For example, let’s say you’re in an accident with an at-fault driver who only has $25,000 in liability coverage. However, the damages to your vehicle and any medical bills that you have exceed that amount. If you have Underinsured Motorist Coverage with a limit of $50,000, your insurance company will cover the remaining $25,000 beyond what the at-fault driver’s policy can cover.
It’s important to note that Underinsured Motorist Coverage is not the same as Uninsured Motorist Coverage. Uninsured Motorist Coverage is designed to provide protection if you’re involved in an accident with someone who doesn’t have insurance at all. While both types of coverage can help cover the costs of an accident, Underinsured Motorist Coverage is specifically designed for incidents where the other driver has some insurance coverage, but it’s not enough to fully cover the damages.
In short, Underinsured Motorist Coverage can be a valuable addition to your auto insurance policy because it provides added protection and peace of mind in the event that you’re involved in an accident with an underinsured driver. Be sure to speak with your insurance agent to get more information about coverage levels and pricing, and start shopping for the best policy to meet your needs.
Why Do You Need Underinsured Motorist Coverage?
As a driver, you’re required to carry a certain amount of liability insurance to cover damages and injuries you may cause to others in an accident. However, not all drivers on the road carry adequate insurance or any insurance at all. This is where underinsured motorist coverage (UIM) comes in.
UIM
provides additional protection to you and your passengers if you’re involved in an accident with a driver who is at fault and does not have sufficient insurance to cover your damages and injuries.
Without UIM, you could be left with significant expenses after an accident, even if the other driver is found to be at fault. Your medical bills, lost wages, and other related costs could be thousands of dollars more than the other driver’s liability insurance will cover. In such cases, UIM coverage may help you pay for those costs, up to the limits of your policy.
Additionally, UIM coverage can provide peace of mind knowing that you and your passengers have protection in case of an accident with an underinsured driver.
It’s important to note that UIM coverage is not required by law in all states, but some states may require it if you carry a certain level of liability insurance. Even if it is not mandated in your state, UIM coverage is still something to seriously consider. The relatively small cost of adding UIM coverage to your policy could save you significant financial hardship in the event of an accident with an underinsured or uninsured driver.
How Underinsured Motorist Coverage Works
Underinsured Motorist Coverage (UIM) is a type of insurance that can provide financial protection if you’re in an accident with a driver who doesn’t have enough insurance to cover the damages they caused. It’s important to understand how UIM works before deciding whether or not to add it to your auto insurance policy.
What Are the Coverage Limits?
UIM coverage limits refer to the maximum amount the insurance company will pay for damages in the event that you’re in an accident with an underinsured driver. For example, if your UIM coverage limit is $50,000 and the at-fault driver’s insurance only covers $30,000, your UIM insurance would cover the remaining $20,000. It’s important to note that UIM coverage limits vary by state and by insurance company.
How Is Coverage Triggered?
In order to trigger UIM coverage, the at-fault driver’s insurance must be insufficient to cover the full cost of the damages. This means that the at-fault driver must be underinsured, which is typically defined as having insurance coverage that is less than the total cost of the damages they caused. If the at-fault driver’s insurance is sufficient to cover the damages, your UIM coverage will not be triggered.
What Happens If the Other Driver Has No Insurance?
If the other driver does not have insurance, then UIM coverage will provide financial protection for you up to the limits of your policy. In some states, uninsured motorist coverage (UM) is required in addition to UIM coverage. UM coverage protects you if you’re in an accident with an uninsured driver.
What Happens If the Other Driver Has Inadequate Insurance?
If the other driver has inadequate insurance, which means they have insurance coverage but it’s not enough to cover the full cost of the damages, then your UIM coverage will provide protection up to the limits of your policy. In this case, the at-fault driver’s insurance would be responsible for paying their policy limit, and your UIM coverage would cover any damages that exceed that limit.
What If the Other Driver Leaves The Scene?
If the other driver leaves the scene of the accident, it’s important to contact the police immediately and report the incident. In this case, your UIM coverage would provide protection up to the limits of your policy, as long as you have uninsured motorist coverage (UM) as well.
What If You’re Hit By an Uninsured Driver While Walking or Biking?
If you’re hit by an uninsured driver while walking or biking, your UIM coverage would provide financial protection up to the limits of your policy, as long as you have UM coverage.
UIM coverage can provide valuable financial protection in the event that you’re in an accident with an underinsured driver. It’s important to review your auto insurance policy and consider adding UIM coverage, especially if you frequently drive in areas with high rates of uninsured or underinsured drivers.
What Are the Coverage Limits?
Underinsured motorist coverage is a type of auto insurance that covers expenses related to accidents involving another driver who has inadequate insurance coverage. The coverage limits for underinsured motorist coverage vary depending on the specific policy and the insurance provider. However, it is important to note that underinsured motorist coverage is typically offered as a part of your overall insurance policy and is subject to the same policy limits as the other types of coverage.
Generally, the coverage limits for underinsured motorist coverage are determined by your individual policy and the state in which you live. That being said, most policies will have a coverage limit that ranges from $50,000 to $300,000 or more. The coverage limit refers to the maximum amount the insurance company will pay out for any single accident or incident.
It is important to consider the potential costs of an accident when choosing your underinsured motorist coverage limits. If you are hit by an underinsured driver, their insurance coverage may not be enough to cover all the costs of the accident, including medical bills, lost wages, and property damage. This is where underinsured motorist coverage can be extremely helpful.
Choosing a higher coverage limit for your underinsured motorist coverage may cost more in your monthly or annual premiums, but it may also provide significant financial protection in the event of an accident with an underinsured driver. It is always a good idea to discuss your coverage options with your insurance provider to ensure that you are adequately protected and that you understand the terms and conditions of your policy.
How Is Coverage Triggered?
Once you have purchased underinsured motorist coverage, the question becomes, how does the coverage get triggered? In other words, what events need to occur in order for your underinsured motorist coverage to come into play?
Generally speaking, underinsured motorist coverage is triggered when the liability coverage limits of the at-fault driver’s insurance policy are exhausted, but the total cost of the damages is still higher than the amount of the at-fault driver’s coverage. This leaves a gap in coverage that can be filled by your underinsured motorist coverage.
For example, let’s say you were in a car accident and the other driver was at fault. The other driver has a liability policy with a limit of $25,000, but the total cost of your medical bills, lost wages, and other damages is $50,000. If you have underinsured motorist coverage with a limit of $50,000, the coverage would be triggered because the other driver’s policy limit has been reached and there is still $25,000 in damages left to cover.
It’s important to note that each insurance provider may have their own specific rules and requirements for when and how underinsured motorist coverage will be triggered. Some insurance companies require the at-fault driver to be fully uninsured before underinsured coverage can be triggered, while others require that the at-fault driver’s liability coverage be completely exhausted first.
Additionally, most insurance companies will require that you provide proof of the at-fault driver’s inadequate coverage, and that you have pursued all other avenues of compensation, such as through the other driver’s insurance or through a lawsuit. This means that you may need to provide documentation such as police reports, medical bills, and court documents.
In summary, underinsured motorist coverage is triggered when the liability coverage of the at-fault driver’s insurance policy is insufficient to cover the total damages. However, different insurance providers may have their own specific rules and requirements for when and how underinsured motorist coverage will be triggered. It’s important to understand your insurance policy and communicate with your insurance provider to ensure that you understand how and when your coverage will come into play.
What Happens If the Other Driver Has No Insurance?
If the other driver involved in an accident has no insurance, it can make things difficult for you if you don’t have underinsured motorist coverage. This is usually considered a worst-case scenario, as there’s no other insurance provider who can pay for the damages. In this case, you would have to pay for your own damages out of pocket, which can be financially devastating. However, if you have underinsured motorist coverage, your insurance provider will pay for the damages as if they were the other driver’s insurance provider.
Underinsured motorist coverage is designed to cover the gap between what the other driver’s insurance would have covered if they had insurance and the actual amount of damages that need to be paid. In the case of an uninsured driver, this gap is 100% and your insurance policy would cover the entirety of your damages. It’s important to note that underinsured motorist coverage only applies to bodily injury or property damage that you sustain as a result of the accident, not damages to your own vehicle. However, your collision coverage may cover damages to your vehicle if you have it.
It’s also worth noting that if the other driver doesn’t have insurance, it’s possible that they won’t be held responsible for covering the costs of the accident. In this case, you might consider filing a lawsuit against the other driver to recoup the costs of the damages. However, this can be a lengthy and expensive process.
It’s clear that it’s important to have underinsured motorist coverage in case an uninsured driver hits you. Without it, you could be left with the financial burden of covering your own damages. While it’s still possible to pursue legal action against an uninsured driver, having underinsured motorist coverage takes care of the majority of financial issues that can arise from an accident with an uninsured driver.
What Happens If the Other Driver Has Inadequate Insurance?
In the unfortunate scenario that the other driver involved in the accident has insurance but not enough to cover the damages, your underinsured motorist coverage could come in handy. This is where the term ‘inadequate insurance’ comes in play.
Let’s say the other driver has a liability limit of $20,000, which is the minimum requirement by most states. If the damages from the accident exceed $20,000, then his policy will not be able to cover the extra expenses that incurred. In this case, your underinsured motorist coverage will kick in to help cover the shortfall.
For example, if the total damages from the accident amount to $30,000 and the other driver’s insurance policy limit is only $20,000, then your underinsured motorist coverage can be used to pay the remaining $10,000. However, it’s important to remember that your coverage should not exceed your own policy limit, so if you have a limit of $25,000, the remaining $5,000 will have to be paid out of pocket.
Your insurance company may require you to seek reimbursement from the other driver’s insurance carrier first before they pay out. This process is known as subrogation, where your insurance company will take on your rights to recover the money paid out on your behalf from the other driver’s insurance company. It’s important to be aware of this potential step, as it can be a lengthy and complicated legal process.
It’s also important to note that some insurance companies may offer underinsured motorist coverage as a separate policy, while others offer it as an endorsement to your existing policy. The cost may vary depending on the provider and the coverage limit you choose, but it may be worth the peace of mind knowing that you will be covered in case of an unfortunate event.
What If the Other Driver Leaves The Scene?
If you’re involved in a hit-and-run accident and the other driver flees the scene, it can complicate matters when it comes to making an insurance claim. In such a scenario, underinsured motorist coverage can prove to be extremely helpful. This type of coverage can provide the same level of protection as it would if the other driver had inadequate insurance coverage.
Firstly, it’s important to contact the police immediately after the accident. They will gather evidence and try to locate the other driver. Your insurance company will also require a police report to process your claim. If the other driver is found, their insurance company may be liable for the damages caused.
However, if the other driver is not found or does not have enough insurance coverage, your underinsured motorist coverage can kick in. Your insurance company will investigate the accident and your damages to determine the amount of coverage that you are entitled to receive.
It’s important to note that hit-and-run accidents can be traumatic and overwhelming, and you may not always have all the information about the other driver. In such cases, underinsured motorist coverage can help provide some peace of mind and financial protection.
It’s also important to review your insurance policy carefully to understand the extent of your coverage in case of a hit-and-run accident. Some policies may have exclusions or limitations, so understanding your policy’s terms and conditions can help you make informed decisions about your coverage.
Overall, underinsured motorist coverage can provide valuable protection in the event of a hit-and-run accident. It’s important to have the coverage you need to protect yourself and your assets in an uncertain world.
What If You’re Hit By an Uninsured Driver While Walking or Biking?
If you are walking or biking and are hit by an uninsured driver, you may think that you have no options for compensation. However, if you have underinsured motorist coverage, it can potentially cover your injuries and damages. This is particularly important for pedestrians and cyclists, who are at higher risk for serious injuries in accidents with motor vehicles.
How Does Underinsured Motorist Coverage Work in This Situation?
Underinsured motorist coverage can kick in to provide protection if the driver who hit you does not have enough insurance to cover your damages. In this case, your underinsured motorist coverage can essentially act as the liability insurance for the driver who hit you. This coverage can help pay for medical bills, lost wages, and other damages resulting from the accident.
What Are the Limits of Coverage?
As with any other type of insurance, there are limits to underinsured motorist coverage. Your policy will have a limit for bodily injury and property damage, which is the maximum amount that your insurance provider will pay out if you make a claim. It’s important to understand your policy’s limits and the amount of coverage you have.
How to File a Claim for Underinsured Motorist Coverage?
If you are hit by an uninsured driver while walking or biking, you will need to file a claim with your own insurance provider for underinsured motorist coverage. This will typically involve providing documentation of the accident and your injuries, including medical bills, police reports, and witness statements.
What Happens If You Don’t Have Underinsured Motorist Coverage?
If you don’t have underinsured motorist coverage and you are hit by an uninsured or underinsured driver, you may have limited options for compensation. You may be able to pursue a lawsuit against the driver, but if they do not have sufficient assets or insurance, you may not be able to recover the damages you are owed.
Why Underinsured Motorist Coverage is Important for Pedestrians and Cyclists?
Pedestrians and cyclists are at increased risk for accidents with motor vehicles, and these accidents can result in serious injuries that require ongoing medical treatment and may prevent you from working or engaging in daily activities. Having underinsured motorist coverage can help provide some financial protection in case of an accident with an uninsured or underinsured driver.
Should You Get Underinsured Motorist Coverage?
Underinsured Motorist Coverage can be a crucial addition to your car insurance policy, providing extra protection in the event of an accident caused by a driver who has inadequate insurance coverage. The decision of whether or not to get this type of coverage is ultimately up to you, but it’s important to carefully consider your options so you can make an informed decision.
Yes, But… Underinsured Motorist Coverage is an important addition to your policy, but it’s not a requirement in every state. It’s important to check with your local Department of Motor Vehicles to understand the requirements in your state. However, even if it’s not required, it’s still a good idea to consider adding it to your policy.
When Should You Get It? You may want to consider getting Underinsured Motorist Coverage if you live in an area where there are many uninsured or underinsured drivers. Additionally, if you frequently drive in high-traffic areas or at times when there are more drivers on the road, the risk of getting into an accident increases, making this coverage more valuable. If you have a newer or expensive car, you may also want to consider this coverage to protect your investment.
Ultimately, you should consider your individual circumstances and decide what level of protection you’re comfortable with. Keep in mind, however, that once you’re in an accident and the other driver is found to be underinsured, it’s too late to add underinsured motorist coverage to your policy.
Shop for Underinsured Motorist Coverage If you decide that you want Underinsured Motorist Coverage, it’s important to shop around for the best policy for you. Start by comparing quotes from different insurance providers to find the most affordable option. However, don’t just choose the policy with the lowest premium without carefully reviewing its coverage limits and any exclusions. Consider the reputation of the provider and read reviews from other policyholders to ensure that you’re getting a policy from a reputable and reliable insurance company.
In the end, the decision of whether or not to get Underinsured Motorist Coverage is up to you. However, it’s important to carefully consider your options and weigh the benefits of this coverage against the cost. If you decide to add it to your policy, be sure to shop around for the best coverage and price before making a final decision.
Yes, But…
Yes, it is highly recommended to get underinsured motorist coverage, but you should also consider your financial situation and ability to pay for coverage. Underinsured motorist coverage can provide you with additional protection in case of an accident with a driver who has inadequate insurance or no insurance at all. However, it’s important to weigh the cost of the coverage against the likelihood of needing it.
It’s also important to note that underinsured motorist coverage is not required by law in all states. While some states make it mandatory to have this coverage, others leave it up to the driver to decide whether or not they want to purchase it. It’s important to research the requirements in your state and determine what level of coverage is necessary for you.
Another consideration to keep in mind is the level of risk involved in your daily commute and driving habits. If you frequently drive in areas with higher rates of uninsured motorists or have had accidents in the past, it may be more beneficial to invest in underinsured motorist coverage.
Additionally, if you have substantial assets or high earning potential, it may be wise to consider higher coverage limits for underinsured motorist coverage. This can help protect you in case of a severe accident that results in significant damages or medical costs. It’s important to consult with an insurance professional to determine what coverage limits are appropriate for your situation.
While underinsured motorist coverage may come at an additional cost, it provides valuable protection that can save you from financial hardship in the long run. Before making a decision, consider your financial situation, level of risk, and desired coverage limits.
When Should You Get It?
Determining when to get underinsured motorist coverage can be confusing. However, there are a few factors to consider that can help you make an informed decision. Firstly, think about your driving habits and the area in which you live. If you frequently drive on busy highways or congested city roads, your risk of being involved in an accident increases. Additionally, if you live in an area with a high number of uninsured or underinsured drivers, you may want to consider getting this coverage.
Another thing to consider is the value of your vehicle. If you have a high-end car that would be expensive to repair or replace, underinsured motorist coverage can be particularly valuable. In the event that you are hit by an underinsured driver and their policy does not cover the full cost of the damages, this coverage can help cover the remaining expenses.
In some cases, your lender or lessor may require that you carry underinsured motorist coverage as part of your auto insurance policy. This is usually the case if you are financing or leasing a car. Be sure to check with your lender or lessor to see if this coverage is required.
Ultimately, the decision to get underinsured motorist coverage comes down to weighing the risks and potential costs. While no one wants to anticipate being in a car accident, it is crucial to be prepared for the worst-case scenario. With underinsured motorist coverage, you can protect yourself and ensure that you have the necessary coverage in the event of an accident.
Shop for Underinsured Motorist Coverage
Once you’ve made the decision to purchase underinsured motorist coverage, it’s important to shop around to find the right policy for you. Here are some key factors to consider.
Compare Quotes
First and foremost, you should gather quotes from multiple insurance providers to find the best price for your desired level of coverage. You can do this by contacting each provider directly or by using an online insurance comparison tool. Keep in mind that the cheapest option may not always be the best, so be sure to compare policy details and customer reviews as well.
Consider the Provider
When selecting an insurance provider, it’s important to do your research to ensure they have a reputation for reliability and customer service. Look up reviews online and check the provider’s rating with independent insurance rating agencies, such as A.M. Best or Moody’s. You may also want to consider any additional benefits or discounts the provider offers, such as a safe driver program or bundling discounts if you also purchase other types of insurance from them.
It’s important to note that not all insurance providers offer underinsured motorist coverage, so be sure to confirm with the provider before committing to a policy.
Shopping for underinsured motorist coverage requires careful consideration and research to ensure you are getting the best coverage for your needs from a reliable provider. By carefully comparing quotes and evaluating providers, you can have peace of mind knowing you are protected in the event of an accident with an underinsured driver.
Compare Quotes
When shopping for underinsured motorist coverage, it’s important to compare quotes from different insurance providers. Comparing quotes allows you to find the best coverage options that fit your budget. Each insurance company has its own rates, policy options, and discounts. By comparing quotes, you can get a better idea of what each provider has to offer.
To start comparing quotes, you should first determine your coverage needs. This involves identifying the amount of protection you need in case you’re in an accident with an underinsured or uninsured driver. You can use online insurance calculators to help you determine the appropriate coverage levels.
Once you know your coverage needs, you can start gathering quotes from multiple insurance companies. You can do this by contacting each company directly or by using an online insurance comparison tool. Online comparison tools allow you to enter your coverage needs and receive quotes from multiple providers. This can save you time and make it easier to get a side-by-side comparison of different policies.
When comparing quotes, it’s important to pay attention to the details. Make sure you understand the coverage options, limits, deductibles, and any exclusions or conditions that may apply. You should also check to see if the insurer offers any discounts or incentives that may lower your premium costs.
While it’s important to find affordable coverage, don’t make your decision based solely on price. You should also consider the reputation of the insurance company, its financial stability, and its customer service. Look for reviews from other customers to get a better idea of how the company treats its policyholders.
In conclusion, comparing quotes is an essential step in finding the best underinsured motorist coverage for your needs. By taking the time to gather quotes and understand your coverage options, you can find a policy that provides the protection you need at a price you can afford. Remember to pay attention to the details and choose a provider that you can trust.
Consider the Provider
When shopping for underinsured motorist coverage, it’s essential to consider the provider carefully. Not all insurance companies are created equal, and you want to make sure you choose a reputable provider that will be there for you in your time of need. One way to evaluate an insurance company is to look at its financial strength. You want a provider that is financially stable and has the resources to pay out claims. You can check an insurer’s financial ratings with agencies like A.M. Best or Standard & Poor’s. Another factor to consider is the provider’s reputation for customer service. You’ll want to choose a company that is easy to work with and has a reputation for handling claims efficiently and fairly. To get a sense of a provider’s reputation, you can read customer reviews and ratings on sites like J.D. Power and Consumer Reports. It’s also a good idea to consider what discounts or additional benefits the provider offers with its underinsured motorist coverage. Some companies may offer discounts for safe driving, bundling policies, or having certain safety features on your vehicle. Others may provide additional benefits, such as roadside assistance or rental car coverage. Take some time to research and compare different providers so you can select the one that best meets your needs and budget. Remember, the cheapest option might not always be the best choice if it means sacrificing quality coverage or service.
Conclusion
After learning about underinsured motorist coverage, it’s clear that it can be a valuable addition to your auto insurance policy. It provides an extra layer of protection in case you’re involved in an accident with a driver who doesn’t have enough insurance to cover your expenses.
However, it’s important to understand the limits of this coverage and carefully weigh the cost. While it may seem like an unnecessary expense, the potential financial consequences of being in an accident with an underinsured driver are significant.
If you decide to add underinsured motorist coverage to your policy, it’s important to shop around and compare quotes from different providers. Look for a provider that has a strong financial rating and a good reputation for customer service.
Remember, getting into an accident can be a stressful and emotional experience. Having adequate insurance coverage can help ease the financial burden and provide peace of mind in a difficult situation.
Overall, underinsured motorist coverage is a safety net for drivers who want to protect themselves and their passengers. While it’s not required in all states, it’s a smart choice for anyone who wants to ensure they’re fully covered in case of an accident.
Frequently Asked Questions
What is the difference between uninsured and underinsured motorist coverage?
Uninsured motorist coverage is meant to protect you in case the other driver has no insurance, while underinsured motorist coverage is meant to protect you in case the other driver has insurance but not enough to cover the damages.
Is underinsured motorist coverage mandatory?
Underinsured motorist coverage is not usually mandatory, but some states may require it or give you the option to purchase it.
What does underinsured motorist coverage typically cover?
Underinsured motorist coverage typically covers medical expenses, lost income, and other damages that result from an accident where the other driver was at fault and did not have enough insurance to cover the full cost of the damages.
Do I need underinsured motorist coverage if I already have health insurance?
Yes, because health insurance may not cover all the costs associated with a car accident, such as lost income or other damages. Underinsured motorist coverage can help cover these costs.
What happens if I’m in an accident with an uninsured driver and I don’t have underinsured motorist coverage?
If you don’t have underinsured motorist coverage, you may have to pay for the damages out of pocket or through your own insurance policy.
How do I know how much underinsured motorist coverage I need?
You should speak with your insurance agent or a financial advisor to determine how much coverage is appropriate for your specific situation.
Can I sue the other driver for damages if I have underinsured motorist coverage?
Yes, but your insurance company may also pursue legal action against the other driver to recover the damages they paid out.
Can I use underinsured motorist coverage if I’m hit by a hit-and-run driver?
Yes, underinsured motorist coverage can be used in hit-and-run accidents where the other driver cannot be identified.
What if I am partially at fault for the accident?
Underinsured motorist coverage still applies even if you are partially at fault for the accident, but your coverage may be reduced based on your level of fault.
Can I cancel my underinsured motorist coverage?
Yes, but you should speak with your insurance provider to determine the best course of action based on your individual situation.
