Underinsured Motorist coverage:
A) is the same as Uninsured Motorist coverage
B) potentially pays the difference between the negligent driver's liability coverage amount and the injured party's UM limits
C) pays for property damage you cause when your victims have no coverage
D) pays for an insured's negligence when insufficient liability limits exist

Question

Quizplus · Accepted Answer

Underinsured Motorist coverage potentially pays the difference between the negligent driver's liability coverage amount and the injured party's UM limits. It is not the same as Uninsured Motorist coverage, which covers damages caused by drivers who have no insurance. It also does not cover property damage caused by the insured, as that would fall under liability coverage. Underinsured Motorist coverage specifically addresses situations where the at-fault driver has insurance but not enough to cover the full extent of the damages.

Underinsured Motorist Coverage