What is the primary purpose of underinsured motorist coverage?

The primary purpose of underinsured motorist coverage is to supplement the insured's recovery when an at-fault driver does not have sufficient insurance to cover the damages incurred. This coverage kicks in when the responsible party’s liability insurance is too low to pay for the full extent of the damages suffered by the insured in an accident. It ensures that the insured can recover costs related to bodily injury, lost wages, pain and suffering, and in some cases, other related expenses, up to the limits of their underinsured motorist policy.

By offering this additional layer of protection, underinsured motorist coverage helps to bridge the gap between what the at-fault driver’s insurance can pay and what the injured party actually needs to recover fully. This is particularly important because, without it, an individual may find themselves facing substantial out-of-pocket expenses due to the inadequacies of another driver’s insurance coverage.