What are the four categories of uninsured motor vehicles?

The correct response identifies the four categories of uninsured motor vehicles as follows: no insurance, inadequate insurance, hit-and-run vehicles, and insurer insolvency.

Understanding these categories is crucial for recognizing the types of situations where a driver might seek compensation through their own uninsured motorist coverage. "No insurance" refers to vehicles whose owners have not purchased any insurance coverage at all. "Inadequate insurance" occurs when a vehicle has insurance, but the coverage limits are insufficient to cover the damages incurred in an accident. "Hit-and-run" situations involve instances where a driver leaves the scene of an accident without providing insurance information, making it challenging to pursue claims against the at-fault party. Lastly, “insurer insolvency” refers to scenarios where the at-fault driver’s insurance company can no longer meet its financial obligations due to bankruptcy or similar issues, leaving victims without a viable source of payment for damages.

The other choices include elements that, while related to the insurance system, do not accurately represent the recognized categories of uninsured motor vehicles. These categories provide a clear framework for assessing financial protection against drivers who fail to maintain adequate insurance coverage.