Uninsured vs. Underinsured: What’s the Difference?
Most drivers are adequately insured but not all. In fact, some of the more dangerous drivers are not. Maybe they have had multiple DUIs; most insurance companies will not insure such a high-risk driver or if they do it is for low amounts of insurance. In such a case, most people have uninsured motorist coverage and underinsured motorist coverage.
If the driver is uninsured, your uninsured motorist coverage should apply to the crash. If the driver does not have adequate coverage, your underinsured motorist coverage should apply.