What is Underinsured Motorist Coverage?

If someone hits your vehicle, your insurance can reimburse you for repairs and pay any medical bills if you or your passengers get hurt. But what if that driver bought a bare-bones policy and doesn’t have enough coverage to make things right?

According to a 2023 study by the Insurance Research Council, one in three drivers in the U.S. were either underinsured or uninsured. You can’t control how much insurance other drivers have, but you can help protect yourself from a shortfall with underinsured motorist coverage.

How does underinsured motorist coverage work?

When you’re in a collision that’s another driver’s fault, that driver’s liability and bodily injury coverage typically reimburses you for car repairs and medical bills. If the other driver’s policy isn’t robust enough, your underinsured motorist coverage may help make up the difference, depending on the extent of the damage and injury. The other driver’s liability coverage pays for your damage up to that policy’s limits, and then your underinsured motorist coverage may provide additional protection.

Because you’re essentially collecting money from another driver’s insurance company, you may need to make the case that you’re entitled to their coverage. It’s always a good idea to get a police report at the scene of a crash, as well as contact information for any witnesses. That might require proving that the other driver was at fault.

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What types of underinsured motorist coverage are available?

There are two main types of underinsured motorist coverage:

Underinsured motorist bodily injury coverage may pay a settlement for medical costs, lost wages, and pain and suffering if you or your passengers get hurt.
Underinsured motorist property damage may pay for repairs to your vehicle.

What is the difference between uninsured and underinsured?

Underinsured motorist coverage may help pay your medical expenses when you’re hit by a driver who has auto insurance but not enough to cover your bills (an underinsured driver).

Uninsured motorist coverage helps pay for those same damages if you’re hit by a driver who has no auto insurance at all (an uninsured driver).

What does underinsured motorist insurance cover?

Underinsured motorist insurance usually covers:

Repairs to your damaged vehicle
Damage to your home, if it’s struck by someone else’s vehicle
Medical bills for you and your passengers, including hospital care
Compensation for pain and suffering
Lost wages, if you’re unable to work due to your injuries
Services that perform tasks that you did before you were injured, such as house cleaners and babysitters
And funeral expenses for you and your passengers

How do I get underinsured motorist insurance?

An insurance agent will work with you to find the policy that’s best for you.

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Content on this page is for informational purposes only and should not be considered as official recommendations or advice from AAA Northern California, Nevada & Utah.