Underinsured Motorist Coverage Modified Limits Trigger

What Does Underinsured Motorist Coverage Modified Limits Trigger Mean?

An underinsured motorist coverage modified limits trigger is a mechanism that activates an underinsured motorist endorsement when there are multiple claimants. It comes into effect if the underinsured party’s insurance is insufficient to fully cover any one claimant’s damages.

Insuranceopedia Explains Underinsured Motorist Coverage Modified Limits Trigger

For example, if an underinsured driver causes an accident involving multiple parties or a vehicle with passengers, their liability insurance may not be sufficient to compensate every claimant. In such a case, the modified limits trigger activates the insured party’s underinsured motorist coverage, which would cover the difference.

Given how many uninsured and underinsured motorists are on the road, carrying adequate UIM coverage matters, especially if you regularly have passengers. UIM is one of the protections typically included in a full coverage car insurance policy.