An insured's damages are valued at $90,000. The at-fault driver's insurer pays its $25,000 limit. The insured carries $100,000 of underinsured motorists coverage. Part C adds:
Explanation
Underinsured motorists coverage, offered as an option in most states, fills the gap between what the at-fault driver's limits pay and the insured's actual damages, up to the underinsured limit. Damages of $90,000 less the $25,000 already recovered leaves $65,000 unpaid, and that sits well inside the $100,000 limit. Coverage is not forfeited merely because the other driver carried some insurance.
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