Uninsured motorist coverage protects you in the event that you were injured as a result of carelessness of a totally uninsured motorist. However, what most people do not realize is that uninsured motorist coverage converts to " underinsured motorist coverage " when you are injured as a result of the carelessness of an individual who has less insurance than your uninsured/underinsured motorist coverage. For instance, if a careless individual with a $25,000 insurance policy causes a significant injury to you and you have a $100,000 of uninsured/underinsured then your own insurance carrier would be responsible to pay the difference between the wrongdoer's insurance coverage ($25,000) and your $100,000 underinsured motorist coverage, or $75,000. Therefore, uninsured motorist coverage provides a double benefit - one if injured by an uninsured driver and a second if injured by someone with less insurance that you own underinsured motorist coverage.
by Ira Sherman, Esq.