What are the Benefits of Underinsured Motorist Coverage?

Underinsured motorist coverage is more important than you might think. This form of insurance is divided into two types of insurance coverage namely bodily injury coverage and property damage coverage. In some states underinsured motorist insurance is required by law. Why should this be so? According to statistics about 14% of all drivers don’t carry any insurance coverage or carry insufficient coverage.

If you are injured in an accident with an underinsured driver you will have to pay all losses out of your own pocket. Medical and property damage expenses can amount to thousands or even millions of dollars so if you can afford it, it may be a good idea to invest in underinsured motorist coverage. This will ensure that you have the best levels of coverage in the event of an accident.

Underinsured motorist bodily injury will help pay for medical expenses, lost income and other damages if you are in an accident with a driver who has inadequate insurance coverage. The amount of money you will receive is usually the difference between the coverage you chose and the other driver’s bodily injury coverage limit. Underinsured motorist coverage for bodily injury is capped based on your policy limit.

Underinsured motorist property damage coverage is also required by law in some states and takes care of damages to your car if it is in an accident with an underinsured driver. The amount of money you receive is usually the difference between your insurance coverage and the other driver’s insurance limit. Underinsured motorist coverage for property damage is capped based on your policy limit.

In certain states uninsured and underinsured motorist coverage for bodily injury are covered under a single policy. This type of insurance is a legal requirement in some states. This insurance cover will help to pay for medical expenses, lost income and damages when you or your passengers are injured in an accident with an uninsured or underinsured driver. It also covers hit-and-run accidents. Underinsured/uninsured motorist coverage is capped based on your policy limit.