What is an underinsurance claim?

If you are involved in an accident and the person who is found to be at fault but does not have enough insurance to cover the claim, underinsured insurance will pay the difference. The purpose of uninsured insurance is to protect you against incidents where you would be left without enough coverage to treat injuries or pay damages caused by another insured driver. Underinsured insurance is different than uninsured coverage, but both are generally packaged to together in a single type of insurance called uninsured/underinsured motorist insurance.

Keep in mind that underinsured insurance only protects you against damages caused by someone else. If you are found to be at fault and do nto have sufficient coverage, your own underinsured insurance will not kick in, and you will be responsible for the the remained of the claim out of your own pocket. To prevent becoming personally liable for large expenses, it is important that you have enough insurance coverage of your own, and that may mean carrying more than the minimum coverage required by your local laws.