Who is considered an underinsured motorist?

An underinsured motorist is defined as a driver who has liability insurance, but the coverage amounts are insufficient to pay for the damages or injuries caused in an accident. In the context of this question, this means that while the motorist does have insurance, the limits of their policy are too low to adequately cover the costs incurred by another party in the event of an accident for which they are at fault.

This concept is crucial because it highlights the importance of having adequate insurance coverage. If someone is involved in an accident with an underinsured motorist, they may find that their own insurance needs to step in to cover the additional costs beyond what the underinsured party's policy can handle. Understanding this helps drivers assess their own insurance needs and ensure they have protection against such situations.