Final answer:
Underinsured motorist coverage is designed to protect an insured person when the at-fault driver's insurance cannot fully cover the damages or medical expenses. It includes all the situations described: insufficient insurance of the negligent driver, inadequate coverage for all damages, and covering medical bills alongside potential lost wages.
Step-by-step explanation:
Underinsured motorist coverage provides financial protection in situations where the at-fault driver has insufficient insurance coverage to pay for the damages they've caused. This insurance coverage steps in when you're involved in an accident where the other driver is at fault and their insurance cannot cover your losses fully. It often includes coverage for bodily injuries, which may extend to paying for medical bills and lost wages due to the accident.
The direct answer is d. all the above. This type of coverage is crucial for ensuring that you are not left covering the costs out-of-pocket due to another driver's lack of adequate insurance. It's important to review your auto insurance policy to understand the extent of underinsured motorist coverage you may have and consider its importance as part of your overall financial protection on the road.