Is underinsured motorist coverage the same as conversion coverage?
They're similar, but they're not the same thing. In Connecticut, drivers have an additional protection option if they're in a car accident with an at-fault driver who isn't carrying sufficient liability insurance to pay bodily injury losses: "Underinsured motorist conversion coverage."
This kind of coverage is different from standard underinsured motorist insurance, which you purchase as part of your own car insurance policy, and which kicks in when you're in an accident with a driver whose liability limits aren't enough to cover your medical expenses and other losses stemming from the accident.
With standard underinsured motorist coverage, your coverage limits might act as a cap on how much you can collect in the accident, because whatever the at-fault driver can pay under his or her own liability coverage is first subtracted from what you can get under your underinsured motorist coverage.
Bottom line: Your underinsured coverage may not apply to cover all of your losses if the total dollar amount of those losses is higher than the limits of your underinsured motorist coverage (depending on the at-fault driver's own liability policy limits).
Under Connecticut car insurance rules, "Underinsured Motorist Conversion Coverage" is an automobile insurance policy option that can provide protection against this kind of financial gap. By choosing conversion underinsured motorist coverage in Connecticut, you'll be able to receive up to the full amount of your underinsured motorist coverage regardless of money paid by other sources, such as the other driver's insurance coverage.
If this sounds a little complicated, click on the article link below for a detailed explanation and examples of different coverage options.