{"id":4310,"date":"2020-07-21T08:11:00","date_gmt":"2020-07-21T08:11:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=4310"},"modified":"2023-08-11T20:31:41","modified_gmt":"2023-08-11T20:31:41","slug":"underinsured-motorist","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/underinsured-motorist\/","title":{"rendered":"What Is Underinsured Motorist Coverage?"},"content":{"rendered":"\n
When another driver causes an accident, you expect his or her insurance to pay for your damages. Sometimes, though, drivers don\u2019t have enough insurance to cover the damages. Fortunately, that doesn\u2019t mean you have to pay out of pocket. You can get underinsured motorist coverage to pick up the bill when this happens. Learn more about underinsured motorist coverage to see why you should add this to your policy.<\/p>\n\n\n\n
First, you need to understand the difference between underinsured and uninsured motorist coverage. Uninsured coverage covers your bodily injury and property damage costs if you\u2019re in an accident with someone who does not have insurance. <\/p>\n\n\n\n
Underinsured motorist insurance covers your bodily injury and property damage costs when the other driver has insurance, but it\u2019s not enough to pay the damages. The other driver\u2019s insurance pays the policy limits, and then your coverage handles the rest. <\/p>\n\n\n\n
Each state has laws regarding the minimum liability coverage amounts. When drivers meet the minimum requirements, they can legally drive. However, minimum liability coverage often isn\u2019t enough to pay for the medical bills and property damage after an accident. When the driver\u2019s insurance policy limits are too low to pay for the damages, they are underinsured.<\/p>\n\n\n\n
This typically happens when someone suffers severe injuries, misses work for an extended period, or has extensive property damage. <\/p>\n\n\n\n