Auto Insurance: What is Uninsured /Underinsured Motorists Coverage?

Auto Insurance: What is Uninsured / Underinsured Motorists Coverage?

By AutoCrisis.com

Uninsured Motorists Coverage

This part of your auto insurance policy protects you if you are involved in an accident with an uninsured or underinsured motorist, for bodily injury.

An Uninsured Motorists (UM) coverage pays for your injuries if a vehicle hits you and the driver does not have any auto insurance coverage on their vehicle. It also covers you if a car hits you and the driver fails to stop i.e. hit-and-run driver. Many states now require Uninsured motorists (UM) coverage in auto insurance policies.

Underinsured Motorists coverage

An Underinsured Motorists coverage of an auto insurance policy kicks in, in the event you are hit by a driver and the damage caused to your vehicle exceeds the limits of the liability coverage on their policy.

For example, an auto insurance policy may state:

Uninsured / Underinsured Motorist Bodily Injury - Limits: $50,000 per person and $100,000 per accident

This means that the insured driver has an uninsured / underinsured motorist bodily injury protection that will pay up to $50,000 per person and $100,000 maximum, per accident.

As always, AutoCrisis.com suggests that you check with your Insurance Agent or provider first before you make a purchase decision, as to the amount, type, and level of auto insurance coverage you will need.

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