Underinsured motorist coverage protects you if you're in a car accident with someone who doesn't have enough insurance to cover the damages you've sustained. For example, if the at-fault driver only has $50,000 in liability coverage and your medical bills are $100,000, underinsured motorist coverage would pay the difference of $50,000.
Both uninsured motorist coverage and underinsured motorist coverage are important types of insurance to have, especially if you live in an area where there are a lot of uninsured and underinsured drivers.
Here is a table that summarizes the key differences between uninsured motorist coverage and underinsured motorist coverage:
| Feature | Uninsured Motorist Coverage | Underinsured Motorist Coverage |
|---|---|---|
| What it covers | Accidents with uninsured drivers | Accidents with underinsured drivers |
| Who it benefits | You and your passengers | You and your passengers |
| Maximum coverage | Usually the same as your liability limits | Usually the same as your liability limits |
| Premiums | Typically higher than underinsured motorist coverage | Typically lower than uninsured motorist coverage |
It's important to note that uninsured motorist coverage and underinsured motorist coverage are not required in all states. However, it's highly recommended that you purchase these types of insurance if you want to protect yourself from the financial consequences of a car accident.
