Underinsured motorist coverage
They had insurance. It just wasn't enough.
Underinsured motorist coverage responds when someone causes an accident, does have liability insurance, but not enough of it to cover the harm.
This is the more likely scenario of the two. Plenty of drivers carry exactly their state's minimum — and in several states that minimum has not kept pace with what an injury actually costs.
How the gap arises
Suppose someone carrying a low bodily injury limit causes an accident that results in far greater medical costs. Their insurer pays up to their limit and stops. The shortfall is real and it's yours.
Underinsured motorist coverage is what responds to that shortfall. Without it, the remedy is pursuing an individual personally, which frequently recovers nothing.
How it stacks with the other driver's policy
States differ on the mechanics. In some, your coverage pays the difference between the at-fault driver's limit and yours. In others it pays on top of what they paid.
That difference is significant and it's set by state law, so it's worth asking how it works where you live rather than assuming.
Why it's usually inexpensive
Compared with the protection it provides, underinsured motorist coverage tends to be one of the less costly items on a policy. It's frequently sold alongside uninsured motorist coverage as a pair.
Given that state minimums in several places wouldn't cover a serious injury, this is a coverage worth carrying more of rather than less.
Check what you already have
Your declarations page will show UM and UIM limits if you carry them. Many people find they're at state minimum on this while carrying much higher liability — protecting others better than themselves.
Common questions
Uninsured responds when the at-fault driver has no coverage. Underinsured responds when they have some but not enough. They're often sold together.
It depends on your state — some jurisdictions offset against what the at-fault driver paid, others allow it to stack. Ask how it works where you live.
It's generally among the less expensive coverages relative to the protection. Given how low some state minimums are, being hit by a minimally insured driver is a realistic scenario.
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This page is general information, not advice about your specific circumstances. A licensed insurance professional can tell you what’s actually available to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state, and are subject to underwriting. Quote My Policy LLC is a licensed insurance producer. Nothing here binds coverage.