What is the purpose of the uninsured motorist coverage?

Uninsured motorist coverage is designed to provide financial protection to insured individuals when they suffer damages in an accident caused by a driver who does not carry any insurance. This type of coverage ensures that policyholders are compensated for their medical expenses, property damage, and other losses incurred due to the negligence of an uninsured driver.

In addition to covering accidents with drivers who have no insurance, this coverage can also extend to situations where a driver is underinsured, meaning their insurance limits are insufficient to cover the damages they caused. Therefore, it encompasses protection against damages caused by both uninsured and underinsured drivers.

Thus, the option that encompasses all these scenarios correctly identifies the comprehensive nature of uninsured motorist coverage in providing broad protection for the policyholder. This is essential not only for individual safety but also for ensuring that those who are involved in accidents are not left financially vulnerable due to another party's lack of insurance.