Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 13, 2020

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Key takeaways...

  • All states have minimum car insurance requirements to drive legally
  • Uninsured motorist coverage is particularly important should a car accident involve serious medical expenses
  • Statistics show there is an ever-growing number of drivers who simply do not have car insurance

There are many types of car insurance available for drivers. Unfortunately,  a large number of uninsured/underinsured drivers are on the road underinsured car insurance coverage should be highly considered when obtaining an auto insurance policy.

Underinsured car insurance is most commonly part of coverage called underinsured/uninsured motorist coverage which provides key coverage in times when a party to a car accident has either no insurance or not enough coverage.

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Table of Contents

Why would I need underinsured insurance?

While almost all states have minimum car insurance requirements these limits are often so low at-fault drivers do not have enough coverage to pay for any kind of medium or major type of car accident.

Statistics show there is an ever-growing number of drivers who simply do not have car insurance.

While auto insurance is required by law not everyone can afford premiums nor desire to undertake such an expense however they still need a vehicle to commute to work and daily activities.

Every time you are behind the wheel there is a risk of getting in a car accident with a driver who has no car insurance or limited coverage.

Underinsured coverage is particularly important should a car accident involve serious medical expenses since a large portion of drivers only have under $50,000 in coverage which can easily be surpassed by a few nights in the hospital.

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How to buy underinsured car insurance?

While a handful of states such as North Carolina and Virginia require drivers to purchase underinsured/uninsured motorist coverage most do not.

State minimum car insurance requirements are set up mostly to cover the cost of vehicle damage and medical expenses are really not calculated into the formula states use to arrive at what should be minimum required limits of coverage.

Underinsured/uninsured motorist coverage is actually very cheap car insurance coverage to add and can provide the additional layer of protection you need in a car accident.

How to Find the Best Car Insurance Rates

Shop around. There is no such thing as the best car insurance company or a company who has the best rates.

Since your needs are different than other drivers, your goal should simply be to find reliable, affordable coverage from a company you can trust.

This can only be done with a thorough car insurance comparison search.

Compare car insurance quotes for uninsured and/or underinsured car insurance online! Enter your zip code below to compare quotes for FREE!

References:

  1. https://www.esurance.com/insurance/car/coverage
  2. https://www.thebalance.com/understanding-minimum-car-insurance-requirements-2645473
  3. https://www.esurance.com/info/car/how-fault-is-determined-after-a-car-accident
  4. https://www.ncdot.gov/dmv/help/insurance/
  5. https://www.esurance.com/info/car/uninsured-and-underinsured-coverage