Question

When are the limits for uninsured motorist coverage set?

a) The limits vary depending on the severity of an accident.
b) After the first qualifying accident.
c) At the time of the first claim.
d) When the coverage is purchased.

Answer 1

The limits for uninsured motorist coverage are set when the coverage is purchased.

Step-by-step explanation:

The limits for uninsured motorist coverage are set when the coverage is purchased.

Uninsured motorist coverage is a type of car insurance that protects you if you're in an accident with an uninsured driver. It helps pay for your medical expenses and damages to your car.

For example, if you purchase uninsured motorist coverage with limits of $50,000 per person and $100,000 per accident, that would be the maximum amount the insurance company would pay if you were injured in an accident with an uninsured driver.