Many drivers are underinsured, which means they don’t have enough insurance to cover the costs of an accident. If you’re in an accident with an underinsured driver, you could be left with substantial medical bills and other damages. Thankfully, underinsured motorist coverage can help protect you in these situations.
So, what is it? How does it work? Well, read on to find out.
How Does Underinsured Motorist Coverage Work?
Underinsured motorist coverage is an optional type of car insurance that can help cover your costs if you’re in an accident with a driver who doesn’t have enough insurance. If you have this coverage, your insurer will pay for your damages up to the limit of your policy.
For example, let’s say you’re in an accident that causes $10,000 in damage to your car. The other driver has insurance, but it only covers $5,000 of the damage. If you have underinsured motorist coverage with a limit of $7,500, your insurer will pay for the remaining $2,500 of the damage.
Why Do I Need Underinsured Motorist Coverage?
If you don’t have underinsured motorist coverage and you’re in an accident with an underinsured driver, you could be left to pay for your own damages. This is especially true if you have significant damage to your vehicle or if you suffer injuries that require extensive medical treatment.
Even if the other driver has insurance, their policy might not cover all of the costs of the accident. This is often the case with accidents that cause extensive damage or injuries. In these situations, underinsured motorist coverage can help make sure you’re not left with a huge bill.
No one wants to think about being in an accident, but it’s important to have the right insurance in place in case it happens. Underinsured motorist coverage can help protect you financially if you’re ever in an accident with an underinsured driver.
Uninsured and Underinsured Motorist Coverage: What’s the Difference?
It’s important to understand the difference between uninsured and underinsured motorist coverage. Uninsured motorist coverage protects you if you’re in an accident with a driver who doesn’t have any insurance.
Underinsured motorist coverage, on the other hand, protects you if you’re in an accident with a driver who doesn’t have enough insurance.
In both cases, your own insurance company will step in to pay for your damages, up to the limit of your policy.
Uninsured and underinsured motorist coverage are both optional types of insurance, but they’re both vital.
The Truth About Uninsured Motorist Coverage
That’s it for this article on underinsured motorist coverage. As you can see, it is an essential part of your auto insurance policy and can help keep you protected in case of an accident. Be sure to speak with your agent about adding it to your plan if you don’t have it already.
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