Which type of insurance policy requires coverage limits according to both the jurisdiction of the accident and the insured's home jurisdiction?

The correct type of insurance policy that requires coverage limits according to both the jurisdiction of the accident and the insured's home jurisdiction is Uninsured Motorist Coverage. This form of insurance is designed to protect the insured in scenarios where they are involved in an accident with a driver who does not have insurance or whose insurance is insufficient to cover the damages.

Uninsured Motorist Coverage is particularly important because different provinces and territories have varying minimum coverage requirements and regulations. When an accident occurs, the specifics of both jurisdictions are significant in determining how much coverage is available to the insured. This ensures that the insured is adequately protected according to the laws that apply immediately after an accident, regardless of where they are registered.

In contrast, the other types of insurance listed operate under different principles. Liability Insurance primarily covers the insured's legal responsibility for damages to another party's property or for bodily injury; it does not necessarily vary based on the jurisdiction of the accident in the same way as Uninsured Motorist Coverage. Collision and Comprehensive Coverage focus on damages to the insured's own vehicle rather than addressing the insurance status of other drivers involved in an accident. Therefore, they do not involve the dual jurisdictional requirements that Uninsured Motorist Coverage mandates.