What does underinsured motorist coverage protect against?

Underinsured motorist coverage is designed to provide financial protection when you are involved in an accident with a driver who has insurance, but their coverage is insufficient to fully cover the damages resulting from the accident. This means that if you incur expenses related to medical bills, lost wages, or vehicle repairs due to the other driver’s actions and their insurance limits are inadequate to cover those costs, underinsured motorist coverage steps in to pay the difference. It ensures that victims are not left with significant financial burdens due to another driver's inadequate insurance.

This type of coverage is essential in states where it is relatively common for drivers to carry the minimum required insurance, which can often be lower than the actual costs that arise from serious accidents. By having this coverage, you can safeguard yourself against the financial impact of being hit by an underinsured driver.