What does "underinsured motorist coverage" protect against?

Underinsured motorist coverage is designed specifically to protect a driver if they are involved in an accident where the at-fault driver does not have enough insurance to cover the damages incurred. This means that if you're hit by someone who has insurance but whose policy limits are too low to pay for the costs of the accident (such as medical expenses, vehicle repairs, and other damages), underinsured motorist coverage kicks in to help cover those additional costs, thereby providing financial protection in scenarios where the other driver's insurance falls short.

This coverage is crucial because it ensures that victims of car accidents are not left to cover significant expenses out of pocket simply because the other driver did not hold enough insurance to fully compensate for the damages. It acts as a safeguard, promoting a more equitable resolution in the aftermath of an accident, ensuring that those affected do not face financial ruin due to another driver's insufficient coverage.