What does UM/UIM endorsement provide coverage for?

The UM/UIM endorsement stands for Uninsured Motorist/Underinsured Motorist coverage, and it is designed to protect drivers in specific situations involving other motorists who do not have enough insurance to cover damages.

When the correct answer pertains to claims when the at-fault party lacks sufficient insurance, it highlights the fundamental purpose of UM/UIM coverage. This endorsement allows a policyholder to seek compensation not only when an accident is caused by someone who has no insurance at all but also when the responsible driver has inadequate insurance limits to fully cover the costs related to bodily injury or property damage.

This endorsement ensures that insured drivers are not left without recourse when they are involved in accidents with drivers who cannot cover the damages they caused, thereby filling a critical gap in financial protection for policyholders. This is particularly essential, as it provides a safety net for individuals who may face significant financial burdens due to medical expenses, lost wages, and other costs associated with an accident.

In terms of alternatives, the other choices do not accurately represent the comprehensive nature of the UM/UIM endorsement. For instance, coverage for property damage caused by uninsured motorists is just one aspect and does not encompass the broader array of situations considered under the endorsement. Similarly, bodily injury claims against the