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8-02 KINDS OF AUTO INSURANCE Handout by yaofenji


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                         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.

 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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