When does Uninsured Motorist's coverage apply?

Uninsured Motorist's coverage applies specifically in situations where an insured individual suffers damages caused by another party who is liable for those damages but does not have insurance coverage. This type of coverage is designed to protect insured drivers from the financial consequences of accidents involving drivers who lack insurance, thereby ensuring that the insured can still recover damages resulting from the accident.

In this context, the distinction made by the correct answer underscores the key feature of Uninsured Motorist's coverage: it addresses the risk associated with drivers who carry no insurance at all. This insurance is meant to step in and provide compensation for losses that would otherwise go unaddressed due to the other driver's lack of insurance.

The other options do not correctly describe scenarios where Uninsured Motorist's coverage would apply, as they either introduce irrelevant details or refer to situations that instead might involve different types of coverage, such as underinsured motorist coverage or liability coverage.