Future Business Leaders of America (FBLA) Personal Finance Practice Test

What does uninsured motorist protection cover?

1. Damage to your vehicle in any accident

2. Injuries to passengers in your vehicle

3. Accidents involving uninsured motorists

4. Property damage caused by natural disasters

The correct answer is: Accidents involving uninsured motorists

Uninsured motorist protection is specifically designed to provide coverage in situations where you are involved in an accident caused by a driver who does not have insurance. This type of coverage typically includes compensation for medical expenses, lost wages, and pain and suffering that you or your passengers may incur due to the accident. It acts as a safety net, ensuring that you have financial support when another driver’s lack of insurance puts you at risk. The other choices do not accurately describe what uninsured motorist protection covers. Damage to your vehicle in any accident would generally fall under collision coverage or comprehensive coverage. Injuries to passengers in your vehicle could be covered under personal injury protection or medical payments coverage, not specifically uninsured motorist protection. Lastly, coverage for property damage caused by natural disasters is typically handled through comprehensive insurance and is not related to automobile accident liability, particularly involving uninsured drivers.