Underinsured motorist (UIM) coverage is entirely voluntary, and permits insureds, at their option, to purchase insurance coverage for situations where they are injured by an at-fault driver who does not carry sufficient liability insurance to cover the insureds' damages. Burgess v. Nationwide Mut. Ins. Co., 373 S.C. 37, 644 S.E.2d 40 (2007). Damages include economic damages {property damage, medical bills, lost wages, etc.}, non-economic damages {pain, suffering, mental anguish, etc.}, and punitive damages.
As a general proposition, underinsured motorist (UIM) coverage is "personal and portable." In other words, the coverage follows the individual insured rather than the vehicle insured. Therefore, the insurance coverage applies in the event of a car wreck where the individual is a passenger in another's vehicle or is a pedestrian, where he/she cannot otherwise insure him/herself.
In certain situations, insurance companies are allowed to limit the portability of UIM coverage. For instance, if you rejected UIM coverage for the vehicle involved in the car accident, you are not entitled to UIM coverage on any other vehicle. In this situation, your insurance company can deny a claim for UIM coverage.
You should consider purchasing the most UIM coverage that you can comfortably afford on all of your vehicles to ensure that you, your family, and your assets are protected. Please feel free to contact me if you’ve been involved in a car wreck, or if you have questions regarding your car insurance coverage.
It is better to have, and not need, than to need and not have. - Franz Kafka