Skip to Content

"damages reduction" provision

"Damages reduction" provision is a term used in connection with uninsured and underinsured motorists (UM/UIM) coverage to refer to limit of insurance provisions that apply (in some states) to set out how the existence of other types of coverage (e.g., workers compensation) that may apply affect UM/UIM coverage as well.

On This Page

Additional Information

Under damages reduction, any amount payable for damages under the coverage is reduced by all sums paid under another type of coverage, as specified in the applicable UM/UIM endorsement.