I was in a fender bender. Other driver is at fault, but has minimums for property damage insurance (10,000). The damage appears to be very minor and the body guy thinks fixes it will be under that. But we also will need a rental and there were 4 car seats in the vehicle that should be replaced too. So his insurance (Progressive) is recommending we get the quote and if it looks like all in that it will be more than 10k we should file a claim through our insurance to supplement (Obviously if more than deductible).
We called our independent agent who said that we can't use our underinsured coverage because we don't have collision or comprehensive. Our agent said we just have to have it because it is legally required on our state, but we basically can never use it.
I call our insurance company (Encompass/National General) who initially told me we can't use it without comprehensive/collision, but when I pressed and asked what is it even for then, and she said that it was for our exact situation. So I asked again with our situation and she said, yes you can use it.
So now, I am thoroughly confused. Thoughts on if we can use it or not? What is a situation where you would recommend using it and having the claim on your file?
Underinsured Coverage – Can/should I use it?
byu/noamfromm inInsurance
Posted by noamfromm
5 Comments
Sounds like you can, it is odd that they initially said you could not. Without knowing your state and the exact policy language, none of us can really say if you can. I would get it in writing from your insurance that you CAN use it and then go from there.
I would trust your insurance company over the agent. Agents don’t specialize in claims, they specialize in sales. Some are better than others.
Plus, your insurance company is the one who decides if there is coverage or not ultimately, not the agent.
Uninsured motorist coverage typically only covers injuries and does not cover anything to do with your vehicle, rental or personal property.
Uninsured motorist property damage is a separate coverage and it only covers your car if the other party is uninsured and not underinsured. They will pay nothing if the other party has insurance or if you can’t find the other party and identify them.
UM/UIM is separate from full coverage (comp/collision). It varies by state but is generally around $250+ deductible. It would work in this situation regardless of whether you had comp and collision. You only need comp/collision if you are deemed at fault or are sharing.
What state are you in, let’s figure out if the coverage you’re referencing even applies to vehicle damage.