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limited to the actual cash value of the damaged property at the time ofthe loss. Carrying a deductible can reduce the cost of comprehensiveinsurance.Example 5. Jason’s car was covered by a comprehensive insurancepolicy. When it was stolen and presumed unrecoverable,Jason claimed the insurance company was liable for the replacementcost of the car. Instead, the company offered the actual cashmarket value of the automobile at the time of the theft. The insurancecompany was correct in its settlement.No-Fault InsuranceUntil the end of 1970, an automobile accident victim could collectdamages for injuries only after proving that the other driver caused theaccident. Courts became clogged with lawsuits involving the questionof fault. Accident victims sometimes had to wait years before beingcompensated. In addition, lawsuits resulted in inconsistent decisions.Costs, including insurance premiums, legal fees, and court costs, continuedto rise. To solve this problem, no-fault automobile insurance wasdeveloped. Under no-fault insurance , regardless of who caused theaccident, all drivers involved collect money from their own insurancecompanies. Because no-fault systems vary by state, you should investigatethe coverage provided by no-fault insurance in your state.Reviewing What You Learned1. Describe bodily injury liability insurance.What does it cover?2. What type of insurance protects parties whoare injured by hit-and-run drivers?Critical Thinking ActivityFair Rates Teenage boys pay a much higherrate for automobile insurance than teenage girlsdo. Is this fair? Explain why or why not. Thentake an informal survey of the students in yourclass who have had tickets or accidents. Are theboys or girls better drivers?Legal Skills in ActionMotorcycle Helmet Laws Florida recentlypassed a law allowing people to ride motorcycleswithout wearing helmets. However,Florida law requires unprotected riders tocarry medical insurance in case of injury.With a partner, debate whether people shouldbe allowed to ride motorcycles without helmets.Does the requirement for insurance makea difference?Chapter 16: Owning a Vehicle 355