Uninsured and Underinsured motorist coverage policies are quite similar, but are still two separate insurance policies. Both are designed to provide coverage to an insured driver, should that driver be involved in an accident with someone who has inadequate coverage.
Uninsured Motorist Coverage
In most states, not carrying any type of car insurance is a crime unto itself. Unfortunately, while it is illegal to be without insurance, it still provides no protection to drivers involved in accidents with uninsured drivers.
Uninsured Motorist Coverage Pays For:
- Medical Expenses. Referred to as Bodily Injury coverage, Uninsured Motorist policies will compensate the insured and their passengers for any medical bills incurred as a result of an auto accident.
- Property Damage. Referred to as Property Damage coverage, Uninsured Motorist policies will compensate the insured for any damages caused to the vehicle as the result of a collision.
Underinsured Motorist Coverage
State laws will require some form of car insurance policy on all vehicles registered, but the extent of the coverage required varies significantly from state to state. Many individuals with higher risk, or inexpensive vehicles, will carry the minimum requirement in order to keep insurance premiums low. As a result, millions of drivers carry insurance policies that don’t adequately cover the damages caused by an “at-fault” accident.
When involved in an accident with a driver carrying inadequate car insurance,
Underinsured Motorist Coverage Provides:
- Bodily Injury coverage. Similar the Uninsured Motorist Policies, Underinsured coverage will pay for any medical expenses not covered by the other driver’s policy.
- Property Damage coverage. Again, the gap in compensation for any damages done to the insured driver’s vehicle, will be made up by the Underinsured coverage.
Determine The Need For Coverage
The above policies are very similar, and carry some of the same coverages as many Collision insurance policies. It’s important to understand all the policies one holds, in order to determine the level of Uninsured or Underinsured protection that is needed, if any.
Understanding the limits and restrictions on the insurance policies carried, is essential to determining the amount of coverage needed. It’s advised to consult an insurance agent prior to modifying any existing coverage. Dependent upon the minimum requirement from state to state, Uninsured/Underinsured Motorist protection may not be needed. Contact state insurance resources for complete details.