VIEWS: 4 PAGES: 1 POSTED ON: 12/20/2011
08.02 HO 1 TYPES OF AUTO INSURANCE Bodily Injury Liability injuries to other persons if insured is at fault injured person must prove driver at fault EX: You rear-ended another driver causing them bodily injury. You are responsible. Property Damage Liability damage to car(s) or property of others if insured at fault must prove driver at fault EX: You hit another driver damaging his rear bumper. You are responsible. Collision damage to insured’s car collect for actual damage or actual cash market value $ claim subject to reduction by deductible amount EX: You hit another car damaging your car’s front bumper. Comprehensive (other than collision) loss or damage to insured’s car caused by fire, flood, hail, theft, vandalism reduce cost by carrying a deductible EX: Your auto sustains paint damage during a hail storm. Medical Payments medical expenses incurred by anyone occupying the insured’s car EX: As your grandmother gets out of your car, her foot gets tangled in her pocketbook and she breaks a hip in the fall. Uninsured/Underinsured motorist injuries to insured if another is at fault and has little or no insurance or in the case of hit and run EX: You are hit by a driver who let his policy lapse, sending you to the hospital and your car to the body shop. Your insurance pays because the responsible party has no insurance. No-Fault Insurance **Not in North Carolina varies from state to state injured person collects from his own insurance company, regardless of fault property damage not covered right to sue is limited to death or serious or permanent injuries EX: You have an auto accident while in Minnesota, a “no fault” insurance state. Your insurance will pay for damages even though the accident was the other driver’s fault.
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