Car Insurance
If you are involved in a crash or receive a speeding ticket, expect your rates to increase significantly—perhaps as much a
20% to 40%.
Depending on your state, rates may drop by ____ after three accident- and ticket-free years, with another drop after six years with a clean driving record.
50%
Required car insurance
Bodily injury and property damage liability coverage: $15,000 per person / $30,000 per accident / $5,000 property (15/30/5)
Melanie get into an accident on the highway that sends her to the hospital for three weeks with multiple broken bones. Her hospital bill totals over $32,000, but she discovers that the woman who hit her only has $25,000 worth of liability insurance. What type(s) of insurance could Melanie use to cover this accident?
Melanie has two options to cover her remaining medical bills. First, she could use Uninsured/Underinsured Coverage, which kicks in when the other driver doesn't have enough Liability Coverage. Or, she could use Personal Injury Protection since her bills are medical bills.
Stephen is slowing down as he approaches a red light. He is looking in his mirror to switch lanes and misjudges how close Keisha's car is, rear-ending her car. When they get out and assess the damage, Keisha's bumper will need to be replaced. What type(s) of insurance could Stephen use to cover this accident?
Since Stephen was not looking and hit Keisha's car, that makes him at fault for the accident. That means he needs to use Liability Coverage to pay for the damage to Keisha's bumper.
Bernard is driving late at night down a narrow road when a deer runs across the road. Bernard doesn't have time to avoid the deer and hits it. His windshield gets smashed and his bumper is partially ripped off, but Bernard is okay. What type(s) of insurance could Bernard use to cover this accident?
This is a tough one. Hitting an animal falls under Comprehensive Coverage because the auto insurance companies generally believe this is a random and often unavoidable occurrence, and should be treated the same as your vehicle getting stolen or damaged by weather. Your rates generally don't rise after such events.
Keisha had some discomfort in her neck at the time of the accident, but thought it was minor and would go away. A week or so after the accident, Keisha finally goes to the doctor, who diagnoses her with whiplash and recommends two months of physical therapy. What type(s) of insurance could Keisha use to cover this accident?
This is somewhat of a trick question. Since he was at fault, it should be Stephen's Liability Coverage that also pays for injuries suffered by Keisha. However, injuries reported weeks after the accident can be tricky with regards to who pays, so to be safe Keisha would want her Personal Injury Protection as a backup.
If your car was damaged in an accident, I've got your back. It doesn't matter who was at fault while driving. However, if the damage came from something besides a crash, I won't be around to help you.
collision coverage
I'm the best friend of new and/or expensive cars, since repairing even small damage can be incredibly costly. Did I mention that the damage doesn't even have to be from an accident with another driver? Nope! If you hit an animal, or your car is stolen, or a tree falls on it, I've still got you covered! (But read my fine print because there are a few cases I won't cover).
comprehensive coverage
I'm the one you call when you cause damage to other people and vehicles. I protect others... against you in case an accident is your fault (which protects you... in your wallet). But I won't pay for any damage to your car or body.
liability coverage
Doesn't matter who was at fault, if you're in a car accident and need your injuries paid for, I'm there for you. Simple as that. However, anything beyond your injuries and I can't help you.
personal injury protection
You are hit in an accident by another driver. At the hospital, you discover the other driver driver doesn't have insurance to cover your medical bills. That's when I kick in!
uninsured/underinsured coverage
