Uninsured and Underinsured Motorist Coverage
Navigating Uninsured and Underinsured Motorist Coverage
Legacy Insurance, located in Colorado Springs, Colorado, offers detailed insights into uninsured and underinsured motorist coverage to clarify these often misunderstood policies. Contact us today for a personalized auto insurance quote.
What Is the Difference Between Underinsured and Uninsured Motorist Coverage?
Uninsured and underinsured motorist coverage serves as a safeguard in scenarios where the at-fault driver either lacks insurance or has insufficient coverage. While these terms are frequently used together, they address different situations.
- Uninsured motorist coverage may help cover costs if an uninsured driver hits you. This coverage steps in when the other driver has no insurance.
- Underinsured motorist coverage may help cover the shortfall when the at-fault driver’s insurance is inadequate. This scenario occurs when the other party’s liability limits are too low to cover the full extent of damages or medical expenses.
Given the distinction between coverages, some insurers may offer these offerings separately; however, some may bundle uninsured/underinsured motorist coverage together.
How Uninsured Motorist Coverage Works
When an uninsured driver causes an accident, this coverage may help cover your accident-related medical costs and property damage. Uninsured motorist coverage does not automatically provide comprehensive coverage for all expenses. The specifics of what’s covered vary based on your policy details and state regulations.
How Underinsured Motorist Coverage Works
Underinsured motorist coverage may help bridge the gap between the at-fault driver’s policy limits and the actual costs incurred from the accident. For example, if the other driver’s policy covers only a portion of your medical bills, underinsured motorist coverage can address the remaining amount, subject to your policy limits and terms.
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Both uninsured and underinsured motorist coverage are crucial components of a well-rounded auto insurance plan.
Contact Legacy Insurance today to learn more about uninsured and underinsured motorist coverage and get a personalized car insurance quote.