What is the primary purpose of underinsured motorist coverage?

The primary purpose of underinsured motorist coverage is to provide costs when the at-fault driver's limits are inadequate. This type of coverage comes into play when you are involved in an accident with a driver who is at fault and whose liability insurance limits are insufficient to cover the damages incurred by you.

For instance, if you suffer significant medical expenses and property damage because of an accident, but the at-fault driver's insurance only covers a fraction of those costs, underinsured motorist coverage steps in to cover the remaining expenses. This protects you financially and ensures that you can receive full compensation for your injuries and damages, even if the other driver cannot provide it through their own insurance policy.

This specific coverage addresses a significant gap in protection that can occur in traffic accidents, especially in situations where medical costs and damages exceed the liability limits of the person responsible for the accident.