Underinsured Motorist Coverage
Definition
- A provision found in some auto insurance policies that provides the policyholder with coverage in the event of a traffic collision where the other driver is at fault but does not have adequate insurance. Also known as a "underinsured motorist endorsement."
Synonyms
excess underinsured motorist coverage, underinsured motorist endorsement, underinsured motorist protection, excess underinsured motorist protection
Related Terms and Acronyms
- Collision Insurance — Definition,
- Auto insurance that provides coverage for damages to the policyholder's vehicle in the event that the policyholder is at fault in a traffic collision.
- Financial Responsibility Laws — Definition,
- A type of law that requires an entity to be capable of paying for damages in the event of a potential claim.
- High Risk Auto Insurance — Definition,
- Auto insurance for drivers with an increased risk of collisions.
- Preferred Auto — Definition,
- Auto insurance for those with better driving records.
- Private-Passenger Auto Insurance Policyholder Risk Profile — Definition,
- A system for sorting drivers by their driving records and how likely they are to cause a loss for an insurance company.
- Subrogation — Definition,
- When an insurance company has the right to take legal action against a third party for damages.
- Underinsurance — Definition,
- When the amount of insurance coverage on an asset is less than the asset's full value.
- Value Reporting Form — Definition,
- A form used to keep track of a business's current inventory value.
