Underinsured motorist coverage ONLY applies when the

This statement is incorrect because underinsured motorist coverage applies when the at-fault driver has coverage, but it is insufficient. If the other driver has no insurance at all, then the situation would typically fall under uninsured motorist coverage, not underinsured.

While hit-and-run situations can invoke coverage, they are typically addressed under uninsured motorist provisions rather than underinsured motorist coverage. This is because hit-and-run drivers may not have any insurance at all, making the situation different from cases where the at-fault driver has inadequate coverage.

This choice is misleading since minimum statutory limits may still be considered underinsured if they do not adequately cover the damages incurred by the non-negligent driver. Underinsured motorist coverage applies specifically when these minimum limits are lower than the coverage available to the non-negligent driver, highlighting the insufficiency of the at-fault driver's insurance.