Underinsured Motorist Coverage Limits Trigger

What Does Underinsured Motorist Coverage Limits Trigger Mean?

An underinsured motorist coverage limit is a type of protection that an insured party can purchase to cover losses resulting from an accident with a driver who lacks sufficient insurance. This coverage is activated when the underinsured driver causes an accident, and their liability limit is lower than that of the insured party.

Insuranceopedia Explains Underinsured Motorist Coverage Limits Trigger

For example, imagine a situation where Driver A has underinsured motorist coverage with a limit of $400,000. Driver B, who only has liability insurance with a coverage of $100,000, causes an accident. If Driver A files a claim for $300,000, their underinsured motorist coverage would be activated due to the limits trigger, as Driver B’s liability coverage is insufficient to cover the full amount.