Legal Nuggets- Underinsurance

In S. C., in the context of automobile accidents and insurance, “underinsurance” is the term usually used for a type of coverage that:

  1. Is optional;
  2. Requires the payment of a separate, additional premium;
  3. Can be purchased in amounts up to the amount of Liability coverage you are carrying;
  4. Is intended to supplement the basic liability coverage that is available to an injured person in a motor vehicle collision;
  5. Covers the policyholder, as well as resident relatives; and
  6. Is subject to rules under South Carolina’s law that are unique and that are different from the laws of our neighboring states.

In serious car wrecks many questions will come-up about underinsurance coverage. The rules on underinsurance in SC are complex. Our understanding of them comes mostly from reading cases that have been decided by our appellate courts. An attorney must be well-versed in those cases in order to fully understand this area of insurance law. The law surrounding underinsurance can be very confusing, especially to people with no legal training or education.

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