What must an auto insurer offer in relation to underinsured motorist coverage?

An auto insurer is required to offer underinsured motorist coverage at least at the same limits as the insured's auto liability policy. This means that if a policyholder has a liability policy with a certain limit—let’s say $100,000 in bodily injury coverage—the insurer must offer the option to purchase underinsured motorist coverage at that same limit.

This requirement is in place to ensure that if an insured is involved in an accident with a driver who has insufficient coverage to fully compensate for damages, they can receive benefits up to the same level they have for their own liability. It provides a safety net, making sure that the insured’s potential financial exposure is minimized in the event of an accident with an underinsured motorist.

The other options present variations that do not align with the statutory requirements. For example, the requirement does not stipulate a flat rate or a minimum set amount that is lower than the insured's own liability limits; it focuses on matching those limits. Similarly, offering the coverage only upon the request of the insured does not comply with the mandate that insurers must present this option to policyholders.