Extended Underinsured Motorist Coverage offers how much in coverage?

Extended Underinsured Motorist Coverage is designed to provide additional financial protection if you are involved in an accident with a driver who has insufficient insurance to cover your damages. This type of coverage is particularly important in cases where the other party's liability limits fall short of what is needed to fully compensate you for medical expenses, lost wages, or damages to your vehicle.

The correct option reflects the commonly offered maximum limit of this coverage, which is typically set at $5 million. This level of coverage allows insured individuals to secure substantial protection against the financial effects of being involved in accidents with underinsured drivers, ensuring they have adequate resources available for recovery and expenses resulting from such incidents.

The other options represent coverage amounts that are either higher than what is generally provided in standard policies or, in the case of $1 million and $3 million, lower than the prevalent maximum of $5 million. This structure is influenced by market standards and the evolving nature of auto insurance needs, where higher limits provide greater reassurance for policyholders.