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Definition

Underinsured motorist’s coverage

Underinsured motorist’s coverage is a coverage that can be added to the personal auto policy. Coverage pays damages for a bodily injury to an insured caused by the ownership or operation of an underinsured vehicle by another driver.

The negligent driver may have insurance that meets the state’s financial responsibility or compulsory insurance law requirement, but the amount carried is insufficient to cover the loss sustained by the insured.

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