What type of insurance typically covers damages from an uninsured motorist?

Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage is specifically designed to protect policyholders in the event they are involved in an accident with a driver who does not have insurance or has insufficient insurance to cover the damages. This type of coverage is crucial because if a driver is hit by an uninsured motorist, they may face significant out-of-pocket expenses for medical bills, lost wages, and property damage that would otherwise be covered by insurance.

UM/UIM coverage provides financial compensation to the insured for their injuries and damages, thus offering a layer of protection and peace of mind when sharing the road with potentially uninsured individuals. This coverage typically includes costs associated with bodily injury and sometimes property damage, ensuring comprehensive protection in such scenarios. Therefore, it is an essential component of auto insurance policies to safeguard individuals from the financial risks posed by uninsured drivers.