What does uninsured/underinsured motorist coverage provide?

Uninsured/underinsured motorist coverage is designed to protect policyholders in situations where they are involved in an accident with a driver who either does not have insurance or does not have enough insurance to cover the damages caused. This type of coverage ensures that if the at-fault party lacks adequate insurance, the injured party can still receive compensation for their medical bills, lost wages, and other expenses resulting from the accident.

This coverage is particularly important because many people assume that all drivers carry sufficient insurance, but this is not always the case. When an insured individual is struck by someone who is uninsured or underinsured, this coverage acts as a safety net, allowing them to recover losses that would otherwise be uncollectible.

In contrast, the other options do not accurately describe the function of this coverage. It does not provide coverage for all vehicles that are not insured or extend to any motor vehicle accident, regardless of insurance status. Additionally, while it may indirectly relate to damages caused by vehicles, it specifically focuses on the situations where the other driver lacks adequate coverage to pay for damages to the insured. Therefore, the focus on the lack of sufficient insurance in option B clearly outlines the purpose of uninsured/underinsured motorist coverage.