Let’s say you’re in an injury. A texting driver swerves out of his lane and into your vehicle. The good news: everybody’s OK, and the other driver’s definitely at fault. But the bad news is your car’s not too fortunate.
Seems fairly cut and dried: the other driver is on the hook for damage to your vehicle, right? No issue…unless another guy does not have insurance. Or doesn’t have enough insurance.
They actually do two separate things, even though most people lump underinsured and uninsured motorist coverage together.
(Although in many states, this is covered under an insured’s wreck coverage).
If the other driver does have insurance, it truly is possible his coverage limits aren’t high enough to cover the damage to your auto. Or enough to cover injuries from the mishap. That is where underinsured insurance kicks in, picking up the difference.
You most likely also discovered that underinsured motorist coverage and uninsured motorist has bodily injury and property damage parts. Bodily injury coverage generally pays covered medical expenses for you, your passengers, or family members who might be driving your car. Property damage coverage usually pays for damages to your car. (In many states, that can be contained in your collision protection, so you might need to check on your policy to validate it.)