Define: Underinsured-Motorist Coverage

Underinsured-motorist coverage is a type of insurance that provides protection in the event you are involved in an accident with a driver who has insufficient insurance coverage to fully compensate you for your injuries or damages.

Underinsured-motorist coverage is not mandatory in all states. However, some states require drivers to carry a minimum amount of underinsured-motorist coverage, while others make it optional.

While both types of coverage provide protection in the event of an accident with an inadequately insured driver, uninsured-motorist coverage applies when the at-fault driver has no insurance at all, while underinsured-motorist coverage applies when the at-fault driver’s insurance is insufficient to cover your damages.

The amount of underinsured-motorist coverage you should have depends on various factors, including your state’s requirements, your personal financial situation, and the value of your assets. It is advisable to consult with an insurance professional to determine the appropriate coverage amount for your specific needs.

Underinsured-motorist coverage typically applies to bodily injury claims rather than property damage. However, some policies may offer limited coverage for property damage caused by an underinsured driver. It is important to review your policy or consult with your insurance provider to understand the extent of your coverage.

Stacking underinsured-motorist coverage refers to the practice of combining the coverage limits of multiple insurance policies to increase the total available coverage. Whether stacking is allowed depends on the laws of your state and the specific terms of your insurance policy. Consulting with an attorney or insurance professional can help you determine if stacking is an option for you.

In most cases, you can file a lawsuit against the underinsured driver to seek additional compensation beyond what is provided by your underinsured-motorist coverage. However, the success of such a lawsuit will depend on various factors, including the driver’s assets and ability to pay. Consulting with a personal injury attorney can help you assess the viability of a lawsuit in your specific situation.

Underinsured-motorist coverage typically includes coverage for medical expenses resulting from an accident with an underinsured driver. However, the specific terms and limits of your policy will determine the extent of coverage. Reviewing your policy or consulting with your insurance provider can help you understand the scope of medical expense coverage.

Underinsured-motorist coverage generally applies to accidents involving motor vehicles. If you are a pedestrian or cyclist hit by an underinsured driver, you may still be eligible for underinsured-motorist coverage if you have such coverage on your auto insurance policy. However, it is advisable to consult with your insurance provider to confirm the applicability of your coverage in such situations.

Underinsured-motorist coverage can be canceled or non-renewed by your insurance provider under certain circumstances, such as non-payment of premiums or a significant increase in risk factors. However, insurance companies must comply with state laws and regulations regarding cancellation and non-renewal, which typically include providing notice and valid reasons for such actions.