What is the difference between an uninsured motorist and an underinsured motorist?

There are big differences between an uninsured motorist and an underinsured motorist.  An uninsured motorist is fairly easy to describe — he or she is someone who doesn’t have any insurance.  An underinsured motorist, by contrast, is someone who has insurance, but doesn’t have enough to cover the harms and losses they have caused.  For example, if a driver who causes a wreck has $25,000 of property damage insurance, but hits and totals a new car that will cost $30,000 to replace, then the driver is considered underinsured.  It works the same for injury claims.  If a driver has the minimum $30,000 of injury coverage, but hits someone and causes them harms of $50,000, the driver is underinsured.

Other related FAQs

• Are there minimum insurance requirements in Texas?
• Do I have to have uninsured/underinsured motorist insurance?
• Do I need to buy vehicle insurance in Texas?
• Do I need uninsured motorist coverage?
• Does every driver in Texas have insurance?
• Does my insurance company automatically pay my claim if I file a UM/UIM claim?
• How many uninsured/underinsured motorists are there in Texas?
• I got a letter from an insurance company talking about a credit they are entitled to for other payments. What are they talking about?
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• I’m a good driver. Do I need insurance?
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• Is uninsured/underinsured motorist insurance expensive?
• My best friend has uninsured/underinsured coverage and says I should get it. What does that mean?
• My car insurance premiums are pretty high. How does an insurance company decide what it is going to charge me?
• There is quite a significant difference between an underinsured driver and an uninsured driver.
• What is the difference between an uninsured motorist and an underinsured motorist?
• What is Uninsured/Underinsured Motorist Coverage?
• Who does the insurance policies cover?
• Why does it matter if I do not have enough insurance?
• Why is an accident with an uninsured driver a big problem?