When are the limits for uninsured motorist coverage set?

The limits for uninsured motorist coverage are established when the coverage is purchased. This is a critical aspect of a personal auto insurance policy because the insured chooses the coverage limits at the time of obtaining the policy. This decision reflects the financial protection they desire in the event of an accident with an uninsured motorist.

When the insurance policy is initially purchased, the policyholder will review their options for coverage limits and select what they feel is appropriate based on their personal circumstances and risk tolerance. It is essential to note that these limits can typically be adjusted upon renewal or when changes are made to the policy, but the initial choice is made at the time of purchase, making it a foundational decision in the insurance process.

Other options do not accurately represent when the limits are determined. The limits do not change at the time of an accident, nor are they dictated by when a vehicle is registered with the state or at the time of policy renewal unless adjustments to coverage are made.