Question on Underinsured Motorist Coverage

[vishaljain]

Hello everyone,

I have a question on Underinsured motorist coverage.

As per the books Underinsured motorist (UIM) coverage applies only:

1) When the losses are greater than the at-fault drivers liability limits
2) And when those liability limits are lower than the injured person’s UIM coverage.

I understood the first part but have a doubt on second one. Below is an example:

Suppose there is an accident:
1) and have a bodily injury loss of $100,000.
2) At fault driver liability limit is $50,000.
3) Person NOT at fault has UIM coverage limit of $25,000.

In the above case, as per the point 2 mentioned, the person will not able to collect any damage because his UIM limits are lower than the at fault driver liability limits OR he will be able to collect $50,000 from at fault liability coverage but nothing from his UIM coverage?

I hope my question is clear to understand. Thanks.

 

[BlockO]

using your example, you would collect $75,000.... 50K from at the fault driver's liability policy, and $25,000 from your UIM coverage. you might also have medical payments coverage or PIP to help offset some of the remaining $25,000.