What is a characteristic of underinsured motorist coverage?

Underinsured motorist coverage is designed to protect you in situations where you are involved in an accident that is caused by a driver whose insurance coverage is insufficient to cover the damages they have caused. This type of coverage steps in to provide additional financial protection when the at-fault party has lower limits on their insurance policy than what is required to fully compensate you for your injuries or damages.

This means if you are injured or your vehicle is damaged in an accident caused by someone who doesn’t have enough insurance to pay for your losses, underinsured motorist coverage will help cover the remaining costs up to your own policy limit. This is especially beneficial when dealing with accidents involving drivers who may not carry adequate coverage, ensuring that you are not left with significant out-of-pocket expenses due to another driver's lack of sufficient insurance.

Therefore, underinsured motorist coverage is a crucial protection for drivers, providing peace of mind that you will have the necessary coverage even when another party’s insurance falls short.