A more thorough explanation:

UNDERINSURED-MOTORIST COVERAGE

Underinsured-motorist coverage is an insurance policy that pays for damages caused by a driver who is at fault but does not have enough liability insurance to cover the damages. This coverage is designed to protect the insured driver from financial losses that may arise from an accident caused by an underinsured driver.

For example, if a driver with underinsured-motorist coverage is hit by another driver who is at fault but only has $20,000 in liability insurance, and the damages to the insured driver's car and medical bills exceed $20,000, the underinsured-motorist coverage will pay for the remaining damages up to the policy limit.

Another example is if a driver with underinsured-motorist coverage is hit by a driver who has no insurance at all, the underinsured-motorist coverage will pay for the damages up to the policy limit.

Underinsured-motorist coverage is important because it provides additional protection to drivers who may be involved in an accident with a driver who does not have enough insurance to cover the damages. The examples illustrate how this coverage works in different scenarios. In the first example, the underinsured-motorist coverage kicks in when the other driver's liability insurance is not enough to cover the damages. In the second example, the underinsured-motorist coverage pays for the damages when the other driver has no insurance at all.