Underinsured and Uninsured Motorist Coverage: What Is It?

What is Underinsured and Uninsured Motorist Coverage?

Underinsured Motorist coverage covers you and your passengers if you are in an accident, which is not your fault, and the other driver has insurance but the damages surpass the liability limits on their policy.

Uninsured Motorist coverage covers you and your passengers if you are in an accident, which is not your fault, and the other driver has no insurance. Uninsured motorist coverage also would kick in if you were ever involved in a hit and run situation. 

How does Underinsured Motorist Coverage Work?

For example, if you drive a Mercedes SUV and you get hit by a driver with PA State minimum limits of $15,000 each person/$30,000 each accident for bodily injury and $10,000 per accident for property damage, you will most likely need to access your underinsured motorist coverage because the damage to your vehicle will probably exceed those limits.

Stacked Vs Non-Stacked Underinsured and Uninsured Motorist Coverage

Now let’s discuss stacked versus non stacked underinsured/uninsured motorist coverage. On your personal auto policy you have the option to stack your underinsured/uninsured motorist coverage. When you stack this coverage, your limit of coverage is multiplied by the number of vehicles on the policy.

For example, if your underinsured/uninsured motorist coverage is $100,000 per person/$300,000 per accident and you have 3 vehicles and choose stacking then your underinsured/uninsured coverage increases to $300,000 per person/$900,000 per accident. If you choose non-stacked coverage then you have $100,00 per person /$300,000 per accident irregardless of how many vehicles you have on your policy.

Generally, the cost to stack coverage is minimal and provides you an additional layer of protection. If you have any questions about underinsured/uninsured motorist coverage or the stacking of these coverages please contact our office at 800-642-3490.