Every automobile insurance policy issued in Connecticut is required, by law, to provide uninsured and underinsured motorist coverage. The purpose of uninsured motorist coverage is to provide protection in several circumstances, such (1) as if the at-fault driver does not have car insurance, (2) if you are struck intentionally by the at-fault driver, (3) if are struck by a hit-and-run vehicle, or (4) if the at-fault driver’s insurance company refuses to provide coverage. The purpose of underinsured motorist coverage is to provide protection if you are hit by an at-fault driver whose liability insurance policy limits are insufficient to compensate you for your injuries. In that situation, you would make a claim against your own insurance company up to the limit of underinsured motorist coverage. But such a claim only applies if the limits of your underinsured motorist coverage are greater than the liability limits of the at-fault driver’s policy, unless you have coverage known as underinsured motorist conversion coverage. Conversion coverage allows you to “stack” the limits of underinsured motorist coverage on top of the liability limits of the at-fault driver’s insurance policy.
A couple of examples will illustrate how these uninsured and underinsured motorist coverage works:
- Case 1 – Uninsured Motorist – You are rear-ended by a vehicle who flees the scene. Your injury case is worth $100,000 and you have uninsured motorist coverage of $200,000. You receive $100,000 from your insurance company.