How does Pennsylvania Underinsured Motorist Coverage work?

It works this way: Imagine Jane, a young woman who is involved in a horrible car accident caused by a drunk driver and who is disfigured as a result of the accident. Let’s assume that the drunk driver has only the mandatory minimum coverage of $15,000 per person and $30,000 per accident. With fractures, permanent scarring, and permanent impairment, Jane’s case would have a value far in excess of $15,000. But because the drunk driver has only $15,000 in coverage, that is all the drunk driver’s insurance company would pay Jane.

If Jane had Underinsured Motorist Coverage, then her own insurance company could pay the difference between what she was entitled to receive and what the drunk driver’s insurance company can pay her. So, Underinsured Motorist Coverage applies when the at-fault driver has some insurance but not enough to make things right.

How much your case is worth is often a subject of dispute between injured people and their insurance companies. Sometimes, injured people don’t know how much their injuries are worth and they’re not sure if they should trust their insurance company.