Leif Olson, Car Insurance Writer
@leif_olson_1
Underinsured motorist insurance protects you if you’re in an accident with an at-fault driver whose liability limits are too low to cover all of your medical and vehicle repair expenses. After the at-fault driver’s liability insurance pays to its limits, your underinsured motorist insurance covers the rest.
For example, if you are involved in an accident where you sustain injuries requiring $35,000 in medical care, and the at-fault driver’s bodily injury liability insurance only covers up to $25,000, your underinsured motorist insurance would cover the remaining $10,000.
Underinsured motorist insurance does not always apply. If you are at fault in an accident, damage to the victim’s vehicle will be covered by your liability insurance, and damage to your own vehicle will be covered by your collision insurance, if you have it. Underinsured motorist coverage also has its own limits, which vary from state to state. If you are in an accident that costs more than the limits of the at-fault driver’s liability insurance and your own underinsured motorist insurance combined, you will need to pay the remaining balance out of pocket.
States That Require Underinsured Motorist Coverage
| States | Requirements |
| Bodily injury coverage of at least $25,000 per person, $50,000 per accident | |
| Bodily injury coverage of at least $50,000 per person, $100,000 per accident | |
| Bodily injury coverage of at least $30,000 per person, $60,000 per accident Property damage coverage of at least $15,000 per accident | |
| Bodily injury coverage of at least $25,000 per person, $50,000 per accident | |
| Bodily injury coverage of at least $25,000 per person, $50,000 per accident | |
| Bodily injury coverage of at least $30,000 per person, $60,000 per accident Property damage coverage of at least $25,000 per accident | |
| Bodily injury coverage of at least $25,000 per person, $50,000 per accident | |
| Bodily injury coverage of at least $25,000 per person, $50,000 per accident | |
| Bodily injury coverage of at least $25,000 per person, $50,000 per accident | |
| Bodily injury coverage of at least $50,000 per person, $100,000 per accident Property damage coverage of at least $10,000 per accident, subject to a $150 deductible | |
| Bodily injury coverage of at least $25,000 per person, $50,000 per accident Property damage coverage of at least $20,000 per accident, subject to a $200 deductible |
*Drivers in Virginia only need this coverage if they choose to purchase car insurance.
When Underinsured Motorist Insurance Is Used
- You’re in an accident that is not your fault.
- The at-fault driver doesn’t have enough liability insurance to pay for your injuries or property damage.
If the at-fault driver has no insurance at all, you will need uninsured motorist coverage instead. Some states require both uninsured and underinsured motorist insurance. In other states, you will only be required to have uninsured motorist coverage, in which case you usually won’t be covered if you’re in an accident with an at-fault driver who has liability insurance but not enough to cover your expenses.
To learn more about the underinsured motorist insurance requirements in your state, check out WalletHub’s guide to uninsured/underinsured motorist coverage.
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