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 protection, underinsured motorist endorsement, excess underinsured motorist coverage, 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.
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