Definitions for "underinsured motorist coverage"
An option in an automobile insurance policy that covers damage done by another...
Underinsured motorist coverage is a clause in motor vehicle insurance policy stating that if the owner of a vehicle or its passenger is injured by another driver for reasons of negligence, and that negligent driver is without liability insurance, the first party's insurance company will pay damages to its insurer.
An automobile policy option which covers one for property damage and bodily injury caused by another motorist whose coverage is insufficient to cover the damages one has suffered. see also uninsured motorist coverage, insured.