What situation applies to an underinsured motorist?

An underinsured motorist is defined as one who has insufficient liability insurance to cover the damages they have caused in an accident. In the context of automotive insurance, when the responsible party does not have enough liability coverage to pay for the damages resulting from an accident—methodically leaving the injured party with a shortfall—this situation meets the criteria for underinsured motorist coverage.

Underinsured motorist coverage is designed to protect drivers whose injuries exceed the liability limits of the at-fault driver’s insurance policy. For example, if the at-fault driver has a liability limit of $25,000 and the injured party's damages amount to $50,000, the at-fault driver is considered underinsured because their coverage is insufficient to cover the full extent of the damages.

The other choices do not pertain to underinsured motorists:

• A situation where the responsible party has no insurance would describe an uninsured motorist.

• A responsible party who has adequate insurance but refuses to pay does not factor into underinsured statuses, as their coverage limits are not the issue.

• A responsible party with multiple insurance policies does not automatically imply underinsurance; their coverage could be adequate depending on the specifics of the policies and limits.

Thus, the focus on a scenario