Underinsured Car Insurance

Car insurance companies in some states also offer what s called supplementary uninsured underinsured motorist coverage.

Underinsured car insurance. To save money on auto insurance premiums a driver might choose to purchase a policy with the minimum coverage limits. Underinsured motorist coverage is a protection that helps pay for your expenses if you re hit by an underinsured driver. Here the at fault driver does have car insurance but their policy limits aren t enough to pay out for all of your expenses. Underinsured motorist bodily injury uim or uimbi pays when another driver causes a car accident but they do not carry enough liability insurance to cover all your medical bills lost wages etc.

It protects you if you re in an accident involving someone who doesn t have sufficient insurance of their own. It is still the same um uim coverage that we ve discussed above but it will also cover you if you ever get into an accident with an uninsured motorist in another state. What non owner car insurance will cover are liability costs if damages exceed what is paid by the. But not everyone is so conscientious.

I am an insurance broker or agent and acting on behalf of my client. In some states uninsured and underinsured motorist coverages are bundled together and offered as a single protection on your car insurance policy. Underinsured motorist coverage is an addition to your auto insurance policy. If that driver is an underinsured driver i e he does not have a sufficient amount of car insurance the auto accident can prove to be very expensive for you.

Be sure to check the insurance laws in your state to learn more. I am permitted to drive it. As a responsible driver you have auto insurance to protect yourself in the event of an accident. Underinsured motorist coverage no matter how much attention you pay to the road there is always a chance you ll be hit by another driver.

If you lack uninsured underinsured um uim auto insurance you can be at financial risk should you ever hit by an uninsured motorist or by someone without adequate coverage. Underinsured motorist coverage uim becomes an important tool when you have a car accident and it is the other driver s fault. It is either registered owned insured by me or my employer. Each state requires auto liability coverage and sets minimum limits that drivers must purchase.