Underinsured Motorist Coverage
While each state has minimum required auto insurance limits, sometimes the minimum just isn’t enough. Underinsured motorist coverage is broken down into two parts, bodily injury and property damage. It 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.
FAQs
What does underinsured motorist cover?
While each state has minimum required auto insurance limits, sometimes the minimum just isn’t enough. Underinsured motorist coverage is broken down into two parts, bodily injury and property damage. It 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.
Is underinsured motorist coverage required?
Each state has different rules about whether or not you are legally required to carry underinsured motorist insurance. 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 persons 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 motorist 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 motorist 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 motorist insurance can help you rest easy knowing you have protection against a common coverage gap that will help keep your finances protected.
How much does a business auto policy cost?
Business auto premiums are based on numerous factors. These can include: the size of the business, type of vehicles, number of vehicles, number of drivers, radius of operation and the location of your business.
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