Underinsured Motorist Endorsement

Underinsured Motorist Endorsement

An insurance policy or supplemental providing coverage to a motorist and/or his family in the event of a car accident with another driver who does not have sufficient car insurance to cover the motorist's repairs and/or medical bills. Underinsured motorist insurance only provides coverage if the policyholder is not at fault in the accident.
References in periodicals archive ?
This is because, if the amount recoverable under the insurance policy always is reduced by the amount collected by the tortfeasor, an insured never could recover the entire liability limit set out in the underinsured motorist endorsement because, by definition, an underinsured motorist is someone who paid something toward the insured's damages, although not enough to satisfy those damages nor enough to exceed the insured's underinsured motorist limits.
The insuring agreement of the underinsured motorist endorsement is similar to that of the uninsured motorist agreement, except that it promises compensatory damages because of bodily injury sustained by an insured and caused by an accident arising out of the ownership, maintenance, or use of an underinsured motor vehicle.