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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 in the case of multiple claimants. It comes into play in the event that the underinsured party's insurance cannot pay any one claimant the full amount.

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Insuranceopedia Explains Underinsured Motorist Coverage Modified Limits Trigger

For instance, in case an underinsured driver causes an accident involving multiple parties or a vehicle with passengers, it is probable their liability insurance cannot compensate every claimant. In this case, the modified limits trigger activates the insured party's underinsured motorist coverage, which would cover the difference.

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