Underinsured Insurance

Uninsured and underinsured motorists are out there and as insurance costs rise the number of underinsured is likely to increase.

Underinsured insurance. 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. Being underinsured means a person has insurance coverage but the limits may not be high enough to cover the full expenses of a claim. 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. It protects you if you re in an accident involving someone who doesn t have sufficient insurance of their own.

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. Underinsured definition is not sufficiently insured. In the case of health insurance according to the commonwealth fund a person is considered underinsured if their out of pocket healthcare expenses are between 5 and 10 of their annual income. Here the at fault driver does have car insurance but their policy limits aren t enough to pay out for all of your expenses.

When you drive with quality coverage you drive with peace of mind. Underinsured motorist coverage uim becomes an important tool when you have a car accident and it is the other driver s fault. 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. Quality auto coverage starts here.

How to use underinsured in a sentence. If your insurance policy is reflective of the property s value when you bought it as opposed to what it is valued at today the house is most likely underinsured. But not everyone is so conscientious.