Uninsured Motorists coverage does not apply towards which type of damages?

Uninsured Motorist (UM) coverage is designed to protect policyholders in the event that they are involved in an accident with a driver who does not have insurance or lacks sufficient insurance to cover the damages. The intent of this coverage is to provide compensation for injuries and damages that are analogous to what would be covered if the other driver had insurance.

Punitive damages, however, are intended to punish the wrongdoer beyond merely compensating the victim for their losses. They are awarded in situations where the other party's actions are found to be particularly egregious or malicious. Because the purpose of UM coverage is to provide a measure of financial recovery rather than to penalize the uninsured driver, punitive damages fall outside the scope of what this coverage addresses.

In contrast, consequential, incidental, and general damages are types of compensation intended to address losses and injuries that result directly from the accident, aligning with the core purpose of Uninsured Motorist coverage to provide financial protection for victims. These damages are compensatory in nature, which is why they would typically be covered under UM policies.