After the bodily injury liability limits are exhausted by the liable party, losses are recoverable from the insured's own auto policy under which optional coverage?

• A. Personal injury protection
• B. Collision coverage
• C. Underinsured motorists
• D. Medical payments

Answer: (C)

When the driver at fault doesn’t have enough bodily injury liability coverage to pay all your damages, you can recover the remaining amount from your own policy through underinsured motorist coverage. This coverage is meant to fill the gap after the other party’s liability limits are exhausted, up to the UM limit you’ve chosen. Personal injury protection would pay your medical expenses regardless of fault, but it doesn’t cover the remainder of bodily injury losses after the liable party’s limits are used up. Collision covers damage to your own car, and medical payments covers medical bills for you and passengers, not the broader gap in third-party liability. So, this scenario fits underinsured motorist coverage.