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falling on your car, you’ll have to buy comprehensive coverage which will cover loss from most other types of events. If you have a car loan, lenders will require you to have collision, and comprehensive coverages .
Uninsured Motorist Coverage. What if you’re in an accident and the other guy has no insurance? What if you come out of the office one day and discover someone has backed into your car and took off without leaving their contact information? It happens more often than you think! Uninsured motorist coverage is the part of an auto insurance policy that covers your losses in the event the other driver causes the accident and has no insurance or is underinsured .
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Bucks for Bean In 2013, Rowan Atkinson (aka Mr. Bean) received about $1,400,000— one of the largest ever collision insurance payouts to repair the damage to his McLaren F1 after he crashed it on an icy road in England.
Expenses Covered PRODUCT PREVIEW
Auto Policy Provision
Bodily Injury
medical expenses and lost income of the victim resulting from a car accident caused by the insured. damage to someone else’s car or property due to a car accident caused by the insured. cost to repair the damage to the insured’s car caused by a collision with another car or stationary object like a tree or building. medical expenses, lost income, and costs to repair the insured’s car due to a car accident caused by an uninsured or underinsured driver. covers losses to the insured as a result of the theft or vandalism of the insured’s car, or as a result of natural disasters, falling objects, fire, hail, flood, or animal damage.
Property Damage Collision Coverage
Uninsured Motorist Coverage
Comprehensive Coverage
Liability Limits. When shopping for car insurance, you will see a triple combination of numbers. Common combinations are 100/300/50, 25/50/25 or 50/100/25. It looks confusing, but this is just an abbreviated way of stating the policy’s liability limits. These numbers indicate in thousands, the maximum amounts of money the insurance company is obligated to pay out in the event of an accident . The first sum indicates policy limits for bodily injury per person . The second number tells you the maximum amount payable for bodily injury per accident . The third indicates the property damage liability limit .
max pay out for bodily injury per accident
100 / 300 / 50
max pay out for property damage
max pay out for bodily injury per person
THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 289
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