Final answer:
The laws that protect insured individuals in accidents with uninsured drivers are covered under uninsured motorist coverage. This part of a car insurance policy provides financial protection for medical expenses and possibly property damage, with the aim to mitigate risks associated with uninsured or underinsured drivers.
Step-by-step explanation:
The type of laws designed to protect an insured when involved in an accident with drivers who have no insurance are uninsured motorist laws. These laws ensure that you have coverage in situations where the at-fault driver lacks sufficient insurance. Having uninsured motorist coverage is part of car insurance policies and is essential for financial protection. It covers medical expenses, and in some cases, may cover property damage if the insured is involved in an accident with an uninsured or underinsured driver.
Besides uninsured motorist insurance, individuals can also procure health, car, house or renter's, and life insurance to protect against a variety of life's risks. Each type of insurance operates to share risk among a group of policyholders, with premiums set based on the expected costs within that risk group. A key factor in any insurance market is avoiding moral hazard, which occurs when people take fewer precautions against risk because they have insurance coverage.