Even though states require evidence of financial responsibility, some individuals feel they are either above the law, never would act in such a way they could be held liable, or just feel they can’t afford it–so they go without even the minimum limits for financial responsibility liability insurance. The uninsured motorist coverage then is made available on your policy to help you with medical or funeral coverages in the event you have an encounter with a non-complying driver. Different levels of coverage are available so check with your agent.

Underinsured coverage is just that. An offending party may be meeting the minimum liability requirements of the state, but your injuries may exceed those limits. If that be the case and you have purchased the coverage, as soon as the other party has reached its limits, your policy will go into effect, covering amounts in excess of the amount paid up to the limits you have purchased.
These two separate coverages are strictly for medical expenses incurred by you or your passengers. They also can be helpful if you are a pedestrian or bicyclist and are injured by uninsured motorist. This coverage provides no monetary benefit to you to repair your vehicle or any other personal property damaged in accident.