Underinsured Motorist Auto Insurance

If you want to protect yourself against motorists that don't have enough insurance, you'll have to buy underinsured motorist coverage. If the other motorist causes an accident, you may receive payments from your insurance company for bodily injuries and loss of pay while you recuperate. Otherwise, you might have to pay for high out-of-pocket medical expenses and legal fees if you choose to file a lawsuit. Even if you are successful in court, you may not be able to get paid in the end, if the uninsured motorist does not have any money or other assets.

Underinsured motorist coverage and health insurance

If you get into an accident with an underinsured motorist, and it's their fault, their insurance company will pay you for injuries suffered. However, you'll have to make up the difference somehow. You can either pay for your medical costs with health insurance or underinsured motorist coverage. The disadvantage of using health insurance in this scenario is that it won't cover loss of pay while you recover from bodily injuries. Also, you won't get paid for pain and suffering, and you might have to pay a high deductible before getting your health insurance company to pay for your medical expenses. On the other hand, underinsured motorist coverage will normally pay for loss of pay, as well as for pain and suffering.

Underinsured motorist coverage and car damages

Some underinsured motorists may purchase property damage liability coverage – especially if your state requires it. However, the minimum state requirement for property damage liability might not be sufficient to cover the damages  to, or replacement costs of,  your car. If you don't want to risk not being able to pay for car repairs due to a collision with an underinsured motorists, you should consider purchasing underinsured motorist property damage coverage. 

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