Book Opener

VEHICLEINSURANCEThe insurance typeslisted here are oftenincluded in a packagepolicy. Does your staterequire vehicle ownersto carry liabilityinsurance to registera vehicle?Figure 16.6Type of InsuranceBodily Injury LiabilityProperty Damage LiabilityCollisionComprehensiveTypes of Automobile InsuranceWhat It CoversInjuries to other persons if the insured is at fault.Damage to the car(s) or property of others if theinsured is at fault.Damage to the insured’s car.Loss or damage to the insured’s car caused by fire,flood, storm, theft, or vandalism.Medical PaymentsUninsured orUnderinsured MotoristMedical expenses incurred by anyone occupyingthe insured’s car.Injuries to the insured if another is at fault andhas little or no insurance or the insured is involvedin a hit-and-run accident.Bodily Injury CoverageThe main types of bodily injury coverage are bodily injury liability,medical payments, and uninsured motorist’s protection (see Figure 16.6).Bodily injury liability insurance protects the insured againstclaims or lawsuits for injuries or death caused by negligence. To recoverfrom the insurance company, the injured person must prove that thedriver of the motor vehicle was at fault.Two numbers, such as 100/300, are often used to describe bodilyinjury liability coverage. These amounts represent thousands of dollarsof coverage. In the previous example, $100,000 is the maximum amountthat the insurance company will pay for the injuries of any one personin any one accident. The second number, $300,000, is the maximumamount the company will pay for all injured parties in any one accident.Medical payments insurance pays for medical, and sometimesfuneral, expenses resulting from bodily injuries to anyone occupyingthe policyholder’s car in an accident. In some states, this type of policypays the medical bills of all family members who are struck by a car orwho are riding in someone else’s car when the car is in an accident.Uninsured motorist insurance provides protection when theinsured is injured in an automobile accident that is caused by a driverwho has no insurance. This coverage also protects parties who areinjured by a hit-and-run driver. Underinsured motorist insuranceprotects you when another driver has insurance, but not enough to payfor any injuries.352 Unit 3: Understanding Consumer Law