What is the purpose of Underinsured Motorist Coverage?

Underinsured Motorist Coverage is designed specifically to protect individuals when they are involved in an accident with a driver whose insurance coverage is inadequate to cover the full extent of damages incurred. This type of coverage allows the injured party to receive compensation for medical expenses, lost wages, and other damages that exceed the at-fault driver's policy limit. For example, if the negligent driver has a policy limit of $25,000 but the injured party’s damages total $50,000, the underinsured motorist coverage would help bridge that gap, ensuring that the injured party can recover the additional costs.

The other options do not accurately represent the scope of Underinsured Motorist Coverage. While some options refer to the involvement of uninsured drivers or general vehicle damage, these concepts pertain to different types of coverage, such as Uninsured Motorist Coverage or comprehensive and collision coverages. Thus, the primary focus of underinsured motorist coverage is to specifically address situations where the at-fault party has insufficient insurance, making option B the correct choice.