Underinsured motorist coverage is a type of auto insurance that covers property damage and medical bills from an accident caused by a driver with inadequate insurance coverage. It is designed to cover you and the people in your car for medical bills, lost wages, and pain and suffering if youre hit by an underinsured driver. Here are some key points to understand about underinsured motorist coverage:

• Underinsured motorist coverage is an addition to your auto insurance policy.
• It is different from uninsured motorist coverage, which covers cases in which the at-fault driver has no insurance at all.
• Underinsured motorist coverage is usually a relatively inexpensive add-on to your auto insurance policy cost.
• It is essential for all drivers to have underinsured motorist coverage, especially in a world where the majority of cars on the roads are underinsured.
• In Michigan, underinsured motorist coverage protects you when you are injured in a car accident caused by another driver who is “underinsured” – meaning that their insurance policy limits are inadequate in relation to the injuries that this driver has caused.
• If the at-fault driver’s insurance policy does not have enough coverage to fully cover the injured person’s damages, the victim can pursue that uncovered portion of their damages through an underinsured insurance claim with their own auto insurance company.
• Uninsured motorist coverage applies when the injured person is injured by an at-fault driver who does not have coverage to cover the damages they owe the injured person.

In summary, underinsured motorist coverage is an important type of auto insurance that protects you and your passengers in case of an accident caused by a driver with inadequate insurance coverage. It is a relatively inexpensive add-on to your auto insurance policy cost and can prove beneficial in the case of an accident.