What is underinsured motorist coverage and why do I need it?
” Underinsured motorist coverage differs from uninsured motorist coverage as it requires that the responsible party actually have insurance. Many states only require that a very low amount of coverage be carried for third party damages, sometimes as low at $5,000. With the current cost of automotive repairs and medical bills, it does not take a very significant accident to exceed $5,000. Underinsured motorist coverage provides coverage if the driver who was responsible for damage or injury does have insurance, but • Their limits are below the state minimums; or • Their limits are not sufficient to coverage all of the damage to your vehicle caused in the accident; and • You or your passengers are injured in the accident; or • The vehicle you own and insure is damaged in the loss. There are also some state specifics that should be noted regarding underinsured motorist coverage. • The following states require this coverage: • Connecticut. • Maine. • Minnesota. • New Hampshire. • Vermont.
