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What Is Underinsured Motorist Coverage?

While each state has minimum required auto insurance limits, sometimes the minimum just isn’t enough.  Just like liability insurance, Underinsured Motorists coverage is broken down into two parts, bodily injury and property damage.  Underinsured motorist coverage can help protect you financially if you’re involved in an auto accident caused by a driver who has auto insurance but whose limits aren’t enough to cover all of your bills after an accident.

What Does Underinsured Motorist Cover?

Underinsured Motorists coverage covers you or your passenger(s) for bodily injury if you’re involved in an accident caused by an underinsured driver. It can also cover damage to your vehicle. It assists by covering things such as:

  • Medical expenses for injuries sustained in an accident
  • Loss of income
  • Funeral costs
  • Treatment for emotional and mental issues resulting from an accident
  • Damage to your vehicle

Is Underinsured Motorist Coverage Required?

Each state has different rules about whether or not you are legally required to carry underinsured motorist coverage.  There are currently 22 states that require this insurance; the State of Colorado is not one of them.  While it may not be required, Underinsured Motorists coverage carries enormous value.  Imagine if your vehicle is hit by someone with only the minimum Colorado State requirements of $25,000 for bodily injury or death to any one person/$50,000 for bodily injury or death to all person in any one accident/$15,000 for property damage in any one accident.  Now imagine that the damage done to your vehicle is $30,000 and your medical bills are $40,000.  Without Underinsured Motorists coverage, you’d be stuck with $30,000 of bills that are not covered by the at fault party’s insurance.  

Underinsured Motorist Coverage vs Uninsured Motorist Coverage

If you’re in an accident that is caused by another driver who has some liability insurance but not enough to cover all of your bills, you’ll be happy you have underinsured motorist coverage. Underinsured Motorists coverage kicks in when the at-fault party’s insurance limits are exhausted and Uninsured Motorists coverage kicks in when the at fault party does not have auto insurance at all.  If you’re involved in an accident with an uninsured or underinsured driver and you don’t have these crucial coverages, you’ll be paying out-of-pocket for damages and medical expenses. Uninsured and Underinsured Motorists coverage can help you rest easy knowing you have protection against a common coverage gap and will help you keep your finances protected.

Use the short form below or call us at Glenwood Insurance for more information. You can reach us at (970) 945-9161. One of our consultants can begin working with you to design a plan that works best for you.

Request an Underinsured Motorist Coverage Quote

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