Insurance Assignment

Assignment Instructions:

The purpose of this assignment is to assess your (or someone else’s) car insurance policy to
determine whether you (or they) have adequate coverage.  Look at each coverage section and
answer the questions.

Coverage A: Liability Insurance

1. Is this a family auto policy or a personal auto policy?

2. What is your premium? Your deductible?

3. What are the split or single liability limits? Explain what each limit means. In other words,
what does the insurance pay

4. Do you think this coverage is adequate? Why or why not?

 

Coverage B: Medical Payments

1. Do you have medical payments coverage? If so, what are its limits?

2. Is there a separate deductible? If so, how much?

3. In the case of an accident, what will this coverage pay for?

4.Do you think this coverage is adequate? Why or why not?

 
 

Coverage C: Uninsured and Underinsured Motorist Coverage

1. Do you have uninsured and underinsured motorist coverage? If so, what are its limits?

2. Is there a separate deductible? If so, how much?

3. In the case of an accident, what will this coverage pay for?

4.Do you think this coverage is adequate? Why or why not?

 
 

Coverage D: Physical Damage (Collision) Insurance

1. Do you have physical damage coverage? If so, what are its limits?

2. Is there a separate deductible? If so, how much?

3. In the case of an accident, what will this coverage pay for?

4.Do you think this coverage is adequate? Why or why not?

 
 

Apply What You Have Learned!

How Much of YOUR Major Auto Accident Loss Will Be Covered? Ashley Diamond of Laramie,
Wyoming, drives an eight- year- old Toyota valued at $ 9600. She has a $75,000 personal
automobile policy with $10,000 per- person medical payments coverage and both collision
($200 deductible) and comprehensive coverage. YOU were driving YOUR CAR and have the
coverage indicated on YOUR INSURANCE POLICY. Late one evening, while you were driving back
from Rocky Mountain National Park, your car crossed the centerline of the road, striking
Ashley’s car and forcing it into a ditch. Your car also left the road and did extensive damage to
the front of a roadside store. Your car was totaled. The following table indicates the damages
and their dollar amounts.

Item Amount
Bodily injuries suffered by Ashley $ 6,800
Bodily injuries suffered by Fran, a passenger
28,634
in Ashley’s car
Ashley’s car 9,600
Bodily injuries suffered by you 2,700
Bodily injuries suffered by Cecilia, a
12,845
passenger in your car
Your car AMOUNT YOUR CAR IS WORTH
Damage to the roadside store 14,123

Complete the following chart and use the information to answer these questions:

(a) How much will Ashley’s policy pay Ashley and Fran?

 
 

(b) Will subrogation rights come into play? In what way?

(c) How much will your bodily injury liability protection pay?

(d) To whom and how much will your property damage liability protection pay?

(e) To whom and how much will your medical protection pay?

(f) How much reimbursement will you receive for your car?

(g) How much will you be required to pay out of your own pocket?

 
Your Accident: Who Pays What?

Coverage Your Policy Ashley’s Policy

Liability ( limits)    
Bodily injury    
Ashley    
Fran    
Cecilia    
Medical payments ( limits)    
You    
Ashley    
Fran    
Cecilia    
Collision coverage ( limits)    
Your car    
Ashley’s car    
Your out- of- pocket expenses    
Fran’s bodily injury    
Excess property damage losses    
Collision insurance deductible    
TOTAL