Across the country, the various states recognize two distinct methods of calculating the amount of underinsured motorist coverage available.  The two models are known as “excess-type” and “reduction-type” UIM coverage. In states where the “reduction-type” UIM model is followed, the insured’s UIM coverage limits are reduced by the underlying liability policy limits.  For example, if you had $100,000 in UIM coverage and the tortfeasor had $15,000 in bodily injury liability limits, then you … [Read more...]