Underinsured motorist insurance is a type of coverage that kicks in when you’re in a car accident and the other driver is at fault but doesn’t have enough insurance to cover your damages or medical bills. This can be a lifesaver in situations where costs exceed what the at-fault driver’s insurance can pay.
Differences Between Uninsured and Underinsured Motorist Coverage:
- Uninsured Motorist Coverage comes into play when the at-fault driver has no insurance or in the case of a hit-and-run.
- Underinsured Motorist Coverage is used when the at-fault driver’s insurance exists but is not enough to cover all your costs from the crash.
Is Everyone Automatically Covered?
Whether you have underinsured motorist coverage depends on where you live:
- In Some Places, this coverage is a must-have. Your policy will have it unless you say you don’t want it.
- In Other Areas, it’s up to you to add it to your policy.
In short, not everyone automatically has underinsured motorist coverage. It depends on the rules in your state and the choices you make when you set up your insurance.
Why Consider It?
Opting for underinsured motorist coverage makes a lot of sense. It’s about protecting yourself from those “just in case” moments. Accidents can be pricey, and you don’t want to be stuck with bills that someone else caused but can’t pay.
It’s wise to check your policy or talk to your insurance agent to see if you have this coverage. If not, finding out how to add it could save you a lot of hassle and money down the road.
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Disclaimer: This information is provided for general informational purposes only and is not intended as legal advice. Laws and insurance policies vary widely and change over time. Always consult your insurance policy documents or an insurance professional for advice on your specific situation.