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glossary

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insurance terms that start with ‘u’

Umbrella insurance

Umbrella insurance (also known as personal umbrella insurance or a personal umbrella policy) provides personal liability coverage for situations not covered or inadequately covered by a policyholder's other insurance policies. Umbrella insurance can also cover court fees and legal costs in the event of a lawsuit.

See also: personal liability, bodily injury, medical payments coverage, secondary coverage

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Underinsured motorist bodily injury coverage

Underinsured motorist bodily injury coverage (also known as UMBI) can help pay for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver who has insufficient car insurance coverage. It typically pays the difference between the coverage limit you select and the other driver's bodily injury coverage limit.

The amount covered by underinsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy. Underinsured motorist bodily injury coverage is available only in certain states, where it's often mandatory.

See also: uninsured/underinsured motorist bodily injury coverage

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What is underinsured motorist bodily injury coverage?


Underinsured motorist property damage

Underinsured motorist property damage (also known as UMPD) coverage is mandatory in some states and optional in others. It can help pay for your own property's repairs when the at-fault driver's liability limit is exceeded.

In other words, if an underinsured driver causes major damage to your car but doesn't have enough insurance to cover the cost of repairs, UMPD can kick in to help cover the cost. UMPD does not apply in hit-and-run situations since the identity of the other driver is unknown.

See also: liability coverage


Uninsured motorist bodily injury coverage

Uninsured motorist bodily injury coverage (also known as UMBI) is available in some states, where it's often mandatory.

This kind of car insurance coverage pays for your medical expenses, lost wages, and other general damages when you or your passengers are injured in an accident caused by a driver who has no car insurance. Uninsured motorist coverage also pays for injuries sustained in hit-and-run accidents.

The amount covered by uninsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.

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Uninsured motorist property damage coverage

Uninsured motorist property damage coverage (also known as UMPD) is often mandatory in states where it's available.

This kind of car insurance coverage protects you if your vehicle is damaged in an accident caused by a driver who has no car insurance. Other protection afforded by this type of auto insurance coverage varies from state to state.

The amount covered by uninsured motorist property damage is capped at the limit you choose when you buy your auto insurance policy.

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What if my car is hit by an uninsured driver?


Uninsured/underinsured motorist bodily injury coverage

In some states, both uninsured and underinsured motorist bodily injury are bundled into a single coverage. In states where this type of car insurance coverage is offered, it may be mandatory.

This kind of auto insurance coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver who doesn't have enough car insurance or who completely lacks auto insurance coverage. This type of auto insurance coverage also pays for injuries sustained in hit-and-run accidents.

The amount covered by uninsured/underinsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.


Underwriter

An underwriter assesses submitted insurance applications and determines whether to provide coverage and, if so, at what price and under what terms.

See also: agent, broker, actuary


Usage-based insurance

Usage-based insurance is a form of car insurance that uses data on your driving habits collected by a telematics device (similar to OnStar®) to calculate your premium. The type of data gathered may vary based on the insurer's standards, but can include time spent driving, miles driven, braking habits, and more.

By basing your premium on how you drive, rather than on the habits of drivers like you, usage-based insurance may offer you a more accurately personalized premium.

See also: deductible, defensive driver and driver improvement courses

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Utility vehicle insurance

Utility vehicle insurance (also known as SUV insurance or sport utility vehicle insurance) is a form of car insurance that specifically covers utility vehicles. Often called SUVs (short for sport utility vehicles), utility vehicles are generally truck- or van-like, 4-wheel drive, high-performance automobiles originally designed for off-road use. Common types of utility vehicle coverages include liability, collision, and comprehensive.

See also: travel trailer insurance, recreational vehicle insurance, commercial vehicle

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Get a quote for your SUV or light truck