I talk about uninsured/underinsured motorist insurance coverage in my office on a regular basis. This misunderstood part of the auto insurance policy needs explaining.
The liability portion of your auto policy covers everyone else. In an accident, your liability limits of your auto insurance policy will pay others for injury or death. The uninsured/underinsured limits will pay you and your family for injury or death if the other guy has little or no insurance.
Due to wrongful death laws, I think auto policies should have a $1 million liability minimum. And if you cover everyone else for a million, you should cover you and your familiy for the same. My opinion.
You can read full details on uninsured motorist insurance coverage and accident claims here.