What is an underinsured driver?
An uninsured driver is one who is on the road without auto insurance. An underinsured driver, however, is one that has insurance, but the limit isn’t high enough to cover the damage caused in an accident.
Every insurance policy comes with a limit to what the insurance company will cover, and individuals can choose the limit they want for their policy. But, if a driver is in an accident with an expensive car or a collision that causes a lot of costly damage, the limit may not be high enough.
How do I handle a collision with an underinsured driver?
The basics of a collision with an underinsured driver are the same as an accident with any other driver.
The main difference between an accident with an underinsured driver and an adequately insured driver is that you’ll need to see if your insurance company will cover the costs that the other driver and his or her insurance company is unable to pay.
Do I have to pay?
Whether or not your insurance company will pay for the costs associated with your accident depend on your insurance policy. Many insurance companies offer uninsured or underinsured motorist coverage, so that when you are in an accident with an underinsured motorist, your policy is intended to cover the costs, up to your limit.