What does Underinsured Motorist Protection cover?

Underinsured Motorist Protection is designed specifically to address situations where an insured individual is involved in an accident with a driver who has insufficient insurance coverage to fully compensate for the damages incurred. This type of protection acts as a safety net for the policyholder, ensuring that if they are involved in an accident caused by an underinsured motorist, they can still recover damages up to their own policy limits.

This coverage is vital because it helps fill the financial gap when the at-fault driver’s insurance limits are not enough to cover the medical expenses, lost wages, and other damages. Without this protection, individuals may find themselves with significant out-of-pocket expenses after an accident, as they rely solely on the other driver’s insurance.

Other options do not accurately define Underinsured Motorist Protection. For example, comprehensive coverage applies broadly to various incidents, not specifically addressing underinsured motorists. Liability coverage pertains to the responsibility for damages caused to other individuals rather than protection for the insured. Lastly, the option concerning legal action doesn’t encapsulate the primary function of Underinsured Motorist Protection, which focuses on insurance recovery rather than legal avenues.