As with uninsured motorist coverages, underinsured motorist coverages can be for bodily injury or property damage (PD) or bodily injury (BI), with the BI being more prevalent.

Underinsured motorist bodily injury covers you, the insured members of your household and your passengers for injuries, damages or death caused by the negligence of a person with insufficient insurance. If you have an accident with a person whose coverage cannot meet your damages, your policy will meet the difference-up to the limit of liability listed on your policy.

If the other driver involved in an accident is underinsured, this coverage typically pays any difference between what the other driver’s insurance covers and what your bodily injury coverage will pay. The coverage limits refer to the maximum amount that will be paid per person, per incident, respectively. If the limits you purchase are lower than an accident’s costs, you will be responsible for paying the amounts over your limits, unless you’re covered by health insurance.

Individuals without health insurance may benefit from this coverage, because if the limits chosen are inadequate, you’ll be responsible for paying the additional amount.

Underinsured motorist property damage covers when property damage is sustained by an insured and the negligent operator possesses insurance, but the limits of liability carried by the negligent driver are not sufficient to cover the damages.

If you do not have Collision coverage, Underinsured Motorist Property Damage coverage pays up to a certain amount for repairs to the insured car (some states have limits at $3500, some are lower and some are higher) If you have Collision coverage, Underinsured Motorist Property Damage coverage only pays your Collision deductible (in some states).

For quotes on uninsured / underinsured motorist coverages from an auto insurance specialist.