This can be the difference between getting your medical bills and lost wages covered or being stuck with a big unpaid balance after a crash. When the at-fault driver has insurance, but not enough to pay for all the harm they caused, this part of your own auto policy may step in and cover the gap, up to your policy limits.

Technically, underinsured motorist coverage is optional or required insurance, depending on the state and policy, that pays when the driver who caused the wreck carries liability insurance that is too low to fully cover your damages. Those damages can include medical expenses, lost income, pain and suffering, and sometimes losses tied to long-term injury. It is different from uninsured motorist coverage, which applies when the other driver has no insurance at all.

In a serious Vermont crash, especially on roads like Route 100 where sharp curves and heavy ski traffic can turn a bad mistake into a major injury, this coverage can matter a lot. Vermont injury claims generally must be filed within 3 years under 12 V.S.A. § 512 (2024), and that deadline can affect both the claim against the other driver and any related insurance dispute. Your insurer may still argue about fault, damages, or policy limits, so underinsured motorist coverage often becomes a key part of a larger personal injury claim or settlement.