Texas Property and Casualty License Practice Exam

What does Uninsured Motorist Coverage provide?

1. Coverage for damage to your vehicle from an uninsured driver

2. Coverage for injuries caused by an at-fault driver with insufficient insurance

3. Coverage when a third party has no liability insurance

4. Coverage for rental car expenses

The correct answer is: Coverage when a third party has no liability insurance

Uninsured Motorist Coverage is designed to protect you when you are involved in an accident caused by a driver who does not have any liability insurance. This means if you are injured or your vehicle is damaged because of an accident with an uninsured driver, Uninsured Motorist Coverage can help cover your medical expenses and, depending on the specific policy, vehicle repairs or compensation for lost wages. In the context of the options provided, this coverage specifically addresses situations where a third party lacks insurance, which aligns with the option that was marked as the correct answer. This coverage is crucial because it ensures that you have a financial safety net when faced with the possibility of a driver who poses a risk by not carrying any insurance at all. The other options do not accurately define the coverage. For instance, coverage for damage to your vehicle from an uninsured driver refers to collision processes, while coverage for injuries caused by an at-fault driver with insufficient insurance relates more to Underinsured Motorist Coverage, which addresses different circumstances. Coverage for rental car expenses pertains to a separate aspect of automobile insurance that involves additional costs incurred when your vehicle is not available for use, not directly associated with uninsured motorists.