ABA Family Legal Guide

Automobiles

Accidents and Insurance

Insurance

How does underinsured motorist coverage work?

Underinsured motorist coverage, which exists in a majority of states, will cover the shortfall if an injured person suffers more damage than can be covered by the driver's insurance. If, for example, the driver who injured you has only $50,000 in bodily injury coverage, but you have $70,000 in damages, you can look to your own insurer to cover the $20,000 shortfall after you have recovered damages from the other driver's carrier.