This coverage is added to supplement the Uninsured Motorist Coverage. The coverage applies only when the other driver has liability limits at the time of an accident which may be insufficient to pay for damages for which that other driver is responsible. This is when the insured's underinsured motorist coverage would apply and payment for the difference could be made. The two coverages are mutually exclusive and do not overlap or duplicate each other. Back to list of terms.
pays the difference between the amount you are entitled to receive for an injury and the actual amount of insurance carried by the driver responsible for your injuries. You and your passengers are covered up to the policy limit.
Protection covers the policyholder and family members if injured by a motorist who carries liability limits less than his/her proportionate share of the total liability. Also provides coverage if the other driver's insurance is with a financially irresponsible insurer.
Property Damage (UIMPD) Underinsured Motorist Property Damage Coverage provides coverage when property damage is sustained by an insured and the negligent operator possesses insurance, but the limits of liability carried by the negligent driver are not sufficient to cover the damages.
Insurance provisions for the "underinsured motorist" cover you, the insured members of your household and your passengers for injuries, damage or death caused by the negligence of a person with insufficient insurance. Should you have a valid claim against a person whose coverage cannot meet your damages, your policy will meet the difference-up to the limit of liability listed on your policy.
Underinsured motorist coverage pays for medical expenses for you and/or your family if you are hit by an motorist who does not have enough insurance to cover your claims.
Because many drivers carry the minimum insurance, or none at all, you can purchase uninsured and/or underinsured motorist coverage on your automobile policy to protect yourself if you are injured by the negligence of another. If you refuse this insurance when you buy a policy, the insurance company needs to have a piece of paper that proves you have rejected this coverage. Otherwise, you are entitled to the protection provided. This allows you to have your damages paid for, including pain and suffering, by your own insurance company if the person who hits you has no insurance or less insurance than you do. This is true even if you have some fault in the collision.
Automobile coverage designed to provide protection for the insured should he or she be included in an accident in which the driver at fault has no insurance (or not enough insurance) to cover the loss.
(UIM) Coverage protects you and anyone in your household against eligible bodily injury losses, up to the UIM limits you purchased, when you cannot recover the losses from an at-fault motorist because the at-fault motorist's liability limits are too low to cover your expenses