What type of insurance should a driver ideally have to protect against damages caused by underinsured drivers?

The ideal type of insurance for a driver to protect against damages caused by underinsured drivers is specifically designed to address this situation. Uninsured motorist property damage coverage provides financial protection when you are involved in an accident with a driver who either does not have insurance or does not have enough insurance to cover the damages. This type of coverage helps alleviate the financial burden if the at-fault driver cannot fully compensate you for the repairs to your vehicle or other property.

Having this coverage is particularly important because even though many states require drivers to carry a minimum amount of liability insurance, that minimum may not be sufficient to cover all damages resulting from an accident. Thus, uninsured motorist property damage ensures that you are not left facing significant out-of-pocket expenses in such situations.

While each of the other insurance options has its purpose, they do not specifically address the scenario of underinsured drivers. Medical payments coverage focuses on medical expenses regardless of fault, collision insurance covers damage to your vehicle from a collision regardless of who caused it, and liability coverage is meant to protect you against claims made by others for damages or injuries you cause. Hence, they do not provide the targeted protection required when faced with an underinsured driver.