Difference Between Uninsured and Underinsured Motorist Insurance

Reader’s Question:

I am really confused. I came across uninsured and underinsured motorist coverages. Are there any differences on those two? Because from what I understand, both coverages would pay for my damage if I am involved in a vehicular accident with another driver who does not have auto insurance. Am I correct or not? I am from Arizona.

Stella

Chandler, AZ

The difference between the two coverages are pretty obvious, from the name of the coverage itself you would be able to differentiate the one from the other.

Uninsured Motorist backs you up for bodily injury if you have an accident with another driver who does not have liability coverage. Just remember the word “uninsured” meaning to say not insure.

Meanwhile, Underinsured Motorist Coverage would support you if you get into an accident with another person who does have not have enough auto insurance to cover for the damages you have incurred. This time the key word is “under” which means lacking of something.

In addition, both coverages – uninsured motorist and underinsured motorist coverage would also support the passengers you have in your car.

I hope, I’ve given you some light on your question. If you have other questions regarding your auto insurance policy, don’t be afraid to ask your auto insurance agent in Arizona.