Connecticut’s Insurance Department notes that there are 2 types of Underinsured Motorist coverage, the traditional one (which may be referred to some as offset) and conversion coverage (which may also be referred to as excess).

Both types of Underinsured Motorist coverages provide for reimbursement in case you are injured by an underinsured driver. If your damages exceed the at-fault driver’s insurance, or other payments, your Underinsured Motorist Conversion coverage will be available for damages not paid. With traditional Underinsured Motorist coverage your payments would be reduced or offset by any payments you received from another source, usually the at-fault party's Bodily Injury Liability coverage. Conversion or Excess Underinsured Motorist is set up so your claim is not reduced by payments from any other source, including the at-fault driver’s Liability insurance.

For example, if you have Uninsured/Underinsured coverage of $300,000 and you sustain $400,000 in personal injuries caused by an at-fault driver with $200,000 in Bodily Injury Liability, Underinsured Motorist offset (traditional) coverage you would normally only be able to collect the $200,000 from the other driver’s insurance plus $100,000 from your own Underinsured coverage, which equals your $300,000 limit. With Conversion (excess) coverage in CT, you could collect the full $200,000 from your own Underinsured coverage, thus getting a total of $400,000 instead of $300,000.

In Connecticut Conversion or Offset Underinsured Motorist coverage is an option that may be purchased which, in effect, "stacks" your policy onto that of a tortfeasor (at fault party). In other words, if someone at fault has insurance coverage that is not adequate to pay damages for injuries which you sustain, Conversion coverage allows you to place your Underinsured motorist coverage on top of the responsible party's coverage regardless of what your limit of Underinsured motorist coverage may be. Traditional Underinsured Motorist coverage limit is offset by what you are paid out by other sources.

For more information on Uninsured/Underinsured coverages in Connecticut you can speak to your agent or contact the CT Insurance Department. For low cost car insurance for Connecticut click here.