Uninsured Motorists Insurance: Importance and Coverage Options

The Importance of Uninsured Motorists Insurance

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Question

Uninsured motorists insurance is fairly low in cost. Because, the cost of the coverage is low compared to the amount of protection it provides, drivers should purchase at least:

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Explanations

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A. B. C. D.

B

Uninsured motorist insurance provides protection to a policyholder if they are involved in an accident with a driver who does not have liability insurance coverage. In such cases, the uninsured motorist insurance can cover the policyholder's medical expenses, lost wages, and other damages resulting from the accident.

Since uninsured motorist insurance is relatively inexpensive, it is recommended that drivers purchase the maximum available limit of coverage. This is because the cost of the coverage is low compared to the potential financial loss that could result from an accident involving an uninsured driver.

Therefore, the correct answer is A. The maximum available limit. Choosing the minimum available limit may not provide sufficient coverage in case of an accident with an uninsured driver, while choosing the equality limit does not make sense since there is no particular standard or guideline for such a limit. Answer D, None of these, is also incorrect as the advice given is to purchase the maximum available limit.