CHARLENE RHINEHART checked the facts with MARCUS REEVES. What Is Underinsured Motorist Coverage?
Your auto insurance policy can include coverage for drivers with inadequate insurance. If you’re involved in an accident with someone who doesn’t have enough insurance on their own, it protects you.
The insurance policy of the person who caused the accident is supposed to compensate the other person who was hurt. The injured party’s underinsured motorist coverage would cover the remainder if the limit on the at-fault party’s policy was less than the value of the damages.
Uninsured coverage, which covers situations in which the at-fault driver does not have any insurance at all, is not the same as underinsured coverage, though the two can be combined. Uninsured motorist coverage is required by more states than underinsured motorist coverage.
Important Takeaways In the event of an accident in which the driver at fault does not have sufficient insurance to cover all of the damages, underinsured motorist coverage provides protection.
In the event of an accident, this kind of coverage can be beneficial and is an inexpensive addition to a standard auto insurance policy.
Underinsured motorist coverage is required by some states, while uninsured motorist coverage is required by more.
