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What Is the Difference Between Uninsured Motorist Coverage and Underinsured Motorist Coverage?

Uninsured and underinsured motorist coverage are relatively inexpensive policies which could prove invaluable if you are in a car accident with someone who either has no insurance or does not have enough to cover your full damages. These types of coverage generally come together and may be included by law on your policy, depending on where you live. In this video, attorney Phil Chupick explains the difference between uninsured motorist coverage and underinsured motorist coverage.

Video Transcription

People ask what the difference is between uninsured and underinsured motorist coverage. They sound similar and they are similar in concept. But one, uninsured motorist coverage, which is the topic of another discussion that you can click to, is when someone hits you and they do not have insurance at all. Underinsured motorist coverage is similar, but it’s when someone hits you in a—in a crash or an accident. And it’s their fault and they have minimum or not enough insurance to cover all of your damages and injuries. For instance, if you’re in a crash and the person that hits you has $25,000 of liability insurance, then that person’s insurance will cover your damages and injuries up to the $25,000. But, in many cases, someone’s injuries can be much more than that. Medical bills can skyrocket if you’re seriously injured. And so, in order to protect yourself, obtaining underinsured motorist coverage is also a very good idea. It essentially adds to the insurance amount that you would be able to use to help you recover from your injuries and damages. And it would be on your policy much like uninsured motorist coverage is on your policy. It’s usually very inexpensive. And we recommend that you get that because, more often than not, if you’re in a serious crash and you have serious injuries, the person that hit you may very well not have enough insurance to cover that. And if you don’t have underinsured motorist coverage, all you’re likely to get is the limits of the other person’s policy, which may not be enough.