The term 'underinsured' refers to which type of driver?

The term 'underinsured' specifically pertains to a driver who has insufficient coverage to pay for damages resulting from an accident. This means that although the driver holds an insurance policy, the limits of that policy are not adequate to cover the full extent of potential costs, such as medical expenses, vehicle repairs, or liability claims.

In essence, underinsured drivers may be legally compliant with minimum coverage requirements but may not have enough protection for significant incidents. This situation can lead to financial burdens for both the underinsured driver and those affected by their actions in an accident, as there may not be enough insurance to fully compensate for all losses.

This contrasts with the other options provided: a driver without any insurance is referred to as uninsured, a driver with maximum coverage implies they have adequate protection and are therefore not underinsured, and a driver who has a commercial policy simply indicates their coverage is for business purposes, which doesn't inherently relate to the adequacy of coverage in terms of personal liability or damages.