What does underinsured motorist coverage offer to the insured?

Underinsured motorist coverage is designed to provide financial protection to the insured when they are involved in an accident with another driver whose insurance is insufficient to cover the costs of the damages or injuries that result from the accident. This type of coverage steps in to fill the gap between what the at-fault driver’s insurance can pay and the actual costs incurred by the insured.

In situations where the insured has serious injuries or significant vehicle damage that exceeds the at-fault driver’s coverage limits, underinsured motorist coverage ensures that the insured can still receive adequate compensation for their losses, helping to cover medical expenses, lost wages, and other damages. This is especially crucial in jurisdictions where minimum insurance requirements may not provide sufficient financial support for severe accidents.

This specific coverage helps protect the insured against the risk of being undercompensated due to another party’s inadequate insurance, thereby enhancing peace of mind while legally driving on the road.