Underinsured Motorist Endorsement

What is ‘Underinsured Motorist Endorsement’

An added provision or attachment to an automobile insurance policy that provides insurance coverage to the policyholder and his or her passengers in the event of an accident caused by a driver who does not have sufficient coverage. The underinsured motorist endorsement covers bodily injury to the policyholder, insured members of the holder’s household and passengers, and may also cover property damage. The endorsement typically pays the difference between what the other driver’s insurance covers and what the underinsured motorist coverage will pay, subject to the maximum limit of the coverage.

Explaining ‘Underinsured Motorist Endorsement’

For example, consider a situation where a driver A only has $100,000 of insurance coverage. This driver A gets in an accident with a underinsured motorist policyholder (driver B) where driver A is at fault. The insurance claim amount is $175,000, so driver A’s insurance only covers $100,000 of that. The underinsured motorist endorsement would pay the policyholder (driver B) the difference of $75,000 less deductibles.

Further Reading

  • Insurance against Lack of Insurance–A Dissent from the Uninsured Motorist Endorsement – heinonline.org [PDF]
  • The Uncompensated Automobile Accident Victim – heinonline.org [PDF]
  • … on cardiovascular catheterization laboratory economics: If the cath lab is your home you should understand its finances: This statement was endorsed by the Alliance … – onlinelibrary.wiley.com [PDF]
  • Perspectives on Uninsured Motorist Coverage – heinonline.org [PDF]
  • The Uninsured Motorist Statute and The Phantom Vehicle: A View From the Southwest – heinonline.org [PDF]
  • Insuring Injuries Caused by Uninsured Motorists – heinonline.org [PDF]
  • Insurance Premium Financing – heinonline.org [PDF]