what is underinsured motorist coverage ?

Answer 1

Uninsured Motorist
This coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance.In some states this coverage may also pay for property damage.This coverage varies by state and depends upon policy provisions.

Underinsured Motorist
This coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance.Application of this coverage varies by state and depends upon policy provisions

Answer 2

In my state the minimum requirement is 15K per vehicle/ 30K per accident for bodily injury liability and 5K property damage.

Most cars today cost a helluva lot more than 5K when they're new.

If someone only has 5K liability insurance, and he causes 7K damage to your Audi, your underinsured motorist coverage makes up the difference.

Or, if you're injured in the accident and need some serious patching up, his 15K isn't going to cut the mustard, so your underinsured motorist pitches in until your own limit is reached.

As an adjuster I handled the first underinsured motorist claim for the auto club of so cal and nobody had developed a release for this kind of coverage. Ah the good old days.

Answer 3

Most of the above answers cover everything, however there are certain states where you cannot use your Underinsured coverage if your Underinsured limits equal or are less than the coverage carried by the person at fault. In other states, you would be able to "add on" your limits where the other's left off. It's a very diverse coverage because of the variances state-to-state. Most states only provide it for bodily injury.

Answer 4

It is in case someone doen't have enough coverage to pay all of the damage. For example, I have 40,000 for underinsured motorist coverage. For example, if you have no insurance, some states don't require it, and you hit me, my insurance will cover up to 40,000 worth of damage. If I didn't have it, I would have to sue you if you had the money to pay.

Answer 5

first of all its calledd uninsured motorist insurance.It protects you incase you are in an accident and the other person does not have any insurance.I have recently had to use mine due to someone ran into me and they did not have ins. My ins. paid for everything except my deductable which is half of you reg. deductable. Your ins. does not do up after they fix it your ins. goes after the other person and gets the money for the damages and gets your deductable back.Trust me this is a good thing to have.Saved me from coming out of pocket to fix mine $10,000.00. little body work replaced whole suspension, new frame,new axle gears.

Answer 6

I may be wrong here, but do you mean "uninsured" ? That is protection for you if you are not at fault in an accident and the other person, who is at fault, does not have any or enough insurance to cover your loss. Then your insurance co. will cover your loss.

Answer 7

When illegal aliens hit you they are the uninsured motorists because they cannot buy insurance even if they wanted to which they don't. If you have that insurance you cover yourself.

Answer 8

It is insurance that covers you in case you are in an accident with someone who is not insured enough. It really comes in handy if the under insured person is at fault in the accident.

Answer 9

helps you pay the costs when theres and accident and the other person has limited insurance

Answer 10

If someone hits you, you get hurt and they don't have enough insurance.