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Types of Motor Vehicle Insurance Coverage provided falls into 2 categories Bodily injury coverage Protection for property damage
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Owning A VehicleChapter 16
Part III
Motor Vehicle Insurance
Financial ResponsibilityAnyone who owns or drives a vehicle should
have protection against personal injury or damage
You also need protection against loss for injuries to others or damages to the property of others
Every state has a financial responsibility law which requires vehicle owners to prove they can pay for damages or injury in an accident
As of 2000, more than 40 states had laws requiring people to carry insurance—in remaining states, most buy auto insurance by choice
Types of Motor Vehicle InsuranceCoverage provided falls into 2 categories
Bodily injury coverageProtection for property damage
Bodily Injury CoverageBodily injury liability insurance
Protects insured against for injuries or death caused by negligence
Numbers such as 100/300 are often used$100,000 is maximum paid for injuries/$300,000
maximum paid to all injured parties in one accident
Medical payments insurancePays for medical, and sometimes funeral
expenses resulting from bodily injuries to anyone occupying the policy holders car in an accident
Bodily Injury Coverage Cont…Uninsured motorist insurance
Provides protection when the insured is injured in an auto accident that is caused by a driver who has no insurance
Also protects injuries caused by hit-and-runsUnderinsured motorist insurance
Protects you when another driver has insurance, but not enough to pay for any injuries
Property Damage CoverageProperty damage liability insurance
Applies when you damage the property of others, including a car, house, telephone pole, or a tree
Person bringing the claim must show driver of vehicle was at fault
Collision insuranceCovers damage to your vehicle when it is in an
accident, regardless of who was at faultCost can be reduced by having a deductible
clause
Property Damage Coverage Cont…Comprehensive insurance
Applies to damage to your vehicle from sources other than collision Fire Theft Lightening Flood Hail Windstorm Vandalism
No Fault InsuranceRegardless of who caused the accident, all
drivers involved collect money from their own insurance companies
Coverage varies from state to state
What do you think???Jillian pays 20 percent LESS than her brother, Kendall, for car insurance. They are both 17 years of age. Do you agree or disagree with
this practice? Explain your position.
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