Underinsured Motorist Coverage

Dictionary Says

Definition of 'Underinsured Motorist Coverage'

An auto insurance policy provision that extends coverage to include property and bodily damage caused by a motorist with insufficient insurance. Underinsured motorist coverage is designed to provide the injured party with compensation above what is alloted by the at-fault party's policy.
Investopedia Says

Investopedia explains 'Underinsured Motorist Coverage'

State laws typically require all motorists to have some form of auto insurance, although it is difficult for those states to maintain 100% compliance. Some drivers will purchase only the minimum amount of coverage required by law. The addition of underinsured motorist coverage usually adds only a nominal expense to the general insurance coverage.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Auto Insurance

    A policy ...
  2. Premium

    1. The total ...
  3. Risk

    The chance that ...
  4. Insurance Claim

    A formal request ...
  5. Insurance

    A contract ...
  6. Ambulance Chaser

    In insurance, a ...
  7. National Average Wage Index - NAWI

    An index ...
  8. 403(b) Plan

    A retirement ...
  9. Financial Intermediary

    An entity that ...
  10. Agent

    1. An individual ...

Articles Of Interest

  1. 15 Insurance Policies You Don't Need

    Learn how to save money by saying "no" to unnecessary coverage.
  2. Top Tips For Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  3. The True Cost Of Owning A Car

    Driving is often the most convenient way to get around, but it'll cost you.
  4. 12 Car Insurance Cost-Cutters

    If car costs are dragging you down, find out how to free yourself from some of the extra weight.
  5. Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.
  6. In Small Business, Success Is Spelled With 5 "C"s

    Incorporating these steps will help your business thrive in a competitive market.
  7. Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  8. Is Loan Protection Insurance Right For You?

    This coverage can keep you from defaulting on your loans when you're in financial trouble.
  9. Selecting And Managing Insurance Payouts

    Find out which settlement option is right for you before you recieve your funds.
  10. Will Filing An Insurance Claim Raise Your Rates?

    An accident can mean higher insurance costs - even if it wasn't your fault.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center