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Underinsured motorist coverage is a type of car insurance that applies when the policyholder is in an accident caused by a driver who doesn’t have sufficient liability insurance. If the policyholder’s expenses exceed the at-fault driver’s limits, underinsured motorist covers the remaining bills up to a certain amount.
How Underinsured Motorist Coverage Works
Say that you are involved in an accident that leaves you with $35,000 in vehicle damage. Typically, the at-fault driver’s property damage liability insurance would pay to repair your car. But if that driver’s liability insurance policy only covers $30,000 in property damage per accident, underinsured motorist coverage would pick up the rest. This would prevent you from having to either file a lawsuit against the driver or pay the remaining $5,000 yourself.
Underinsured motorist coverage is required in some states along with uninsured motorist insurance, which applies when the at-fault driver doesn’t have any liability insurance at all. But even if it’s not required, underinsured motorist coverage is still optional in most states. To learn more, check out WalletHub’s guide to uninsured/underinsured motorist coverage.
People also ask
Is uninsured motorist coverage required in Virginia?
No, uninsured motorist coverage is not required in Virginia, since drivers are allowed to opt out of car insurance if they pay a $500 fee. If a driver chooses to get insurance, they must get $30,000 in uninsured motorist bodily injury coverage per person (up to $60,000 per accident), as well as $20,000 in uninsured motorist property damage insurance per accident. Similar amounts of underinsured motorist coverage are also required if you choose to get auto insurance in Virginia.
Key...
read full answer by WalletHub, Financial CompanyDo I need uninsured motorist coverage if I have health insurance?
Yes, you need uninsured motorist coverage if you have health insurance and you live in one of the 22 states where uninsured motorist insurance is required. Even if uninsured motorist coverage is optional in your state, buying it is smart if your health insurance plan is limited or requires high out-of-pocket expenses.
Uninsured motorist insurance comes in two forms: uninsured motorist property damage (UMPD) and uninsured motorist bodily injury (UMBI). Uninsured motorist property damage coverage will pay...
read full answer by WalletHub, Financial CompanyDoes uninsured motorist cover a hit and run?
Yes, uninsured motorist insurance (UM) covers hit-and-run accidents in most states. In states like California and Illinois, however, drivers cannot use uninsured motorist property damage coverage (UMPD) to repair or replace their vehicle if the at-fault driver is unidentified. In these instances, drivers must file a claim with their collision insurance, if they have it.
What Uninsured Motorist Insurance Covers in a Hit and Run
Your uninsured motorist bodily injury insurance (UMBI) will cover your injuries, while uninsured motorist property damage insurance...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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