Why You Need Underinsured Motorist Coverage

Underinsured motorist coverage is a way to protect an insured driver who becomes involved in a collision with another driver who does not have adequate auto insurance coverage. If the driver of the other vehicle is determined to be at fault and their policy limit does not cover your all the related expenses, you will most likely have to pay out of pocket to cover the rest if you do not have underinsured motorist coverage. Because many states have low auto insurance coverage minimums, their policies will most likely not cover them or involved parties in the event of a major accident.

Underinsured Motorist Coverage Basics

If you are involved in an accident, it is crucial that you write down the full contact name, drivers license number, model, make, license plate and insurance company information from the other involved party. If you are in an accident with an underinsured driver who is found at fault, you will be compensated for your damages by their insurance company up to their policy limits, and then you can make a claim with your own insurance company for the remaining balance.

Be Sure You Have Underinsured Coverage

It’s important that you make sure your policy covers underinsured motorist coverage. You need to check with your car insurance provider to ensure you understand the full terms of your insurance policy, and be sure to add on underinsured motorist coverage if it’s currently not included in your policy. You may also need to look into uninsured motorist coverage as well.