Underinsured Motorist Coverage – Pays you for property damage or bodily injury if you are in an auto accident caused by a driver who is insured, but who has less coverage than your underinsured motorist coverage. When damages are greater than the limits of the other driver’s policy, the difference is covered by your underinsured motorist coverage.
If the bad guy has no insurance you can make an Uninsured Motorist/UM claim, if the bad guy has insurance but it is not enough to cover your damages, then you have an Underinsured/UIM claim (assuming that you have more UIM coverage than the defendant has).
Please note that the limits of your UM/UIM claim are up to the limits you purchased. For example, if you only purchased $50,000.00 in UM/UIM benefits and you are suffering from a herniated disc, nerve damage, lost 6 months from work, had surgical procedures, etc., then the maximum gross recovery will be the $50,000 limits of your UM/UIM coverage. We recommend that you raise your UM/UIM coverage up to the amount of liability coverage you decided to protect yourself with.