Hawaii Insurance License Practice Exam

What type of coverage is primary when an accident involves an uninsured motorist?

1. Comprehensive Coverage

2. Liability Coverage

3. Uninsured Motorist or Underinsured Motorist Coverage

4. Collision Coverage

The correct answer is: Uninsured Motorist or Underinsured Motorist Coverage

Uninsured Motorist or Underinsured Motorist Coverage is the primary type of coverage that comes into play when an accident involves a driver who does not have insurance or whose insurance is insufficient to cover the damages. This type of coverage is specifically designed to protect insured individuals from the financial impact of accidents caused by uninsured or underinsured drivers. The purpose of this coverage is to ensure that individuals can receive compensation for damages and injuries sustained in an accident, allowing them to recover medical expenses, lost wages, and other damages even when the at-fault driver lacks insurance. It fills the gap that exists when the other party fails to have adequate insurance coverage, thereby alleviating the burden on the insured party. Comprehensive Coverage, Liability Coverage, and Collision Coverage serve different functions. Comprehensive Coverage protects against non-collision-related incidents such as theft or natural disasters. Liability Coverage is meant to cover damages the policyholder causes to other individuals or their property. Collision Coverage applies specifically to damage to the policyholder's own vehicle resulting from a collision, regardless of fault. None of these options provides the essential protection against uninsured motorists that the Uninsured Motorist or Underinsured Motorist Coverage specifically addresses.