He would like someone to explain to him his coverage. For questions 1-3, explain where in his auto policy (which "part" of the policy) each of the below losses might be covered. For question 4, tell him what he can expect with his split liability coverage. 1. The cost of the medical check-up for his passenger, Pam. Medical payments coverage which falls under bodily injury coverage 2. The damage to his car. Collision insurance which falls under property damage coverage 3. The damage to the car in front of him. Property damage liability which falls under property damage coverage 4. The total amount of liability protection for bodily harm and property damage that he has in his policy (i.e., identify the three parts of split liability insurance). Liability insurance can be listed on his policy as a combined limit or a split limit. If Will’s policy lists one maximum amount that the insurance company will pay to cover all his liabilities, then he has a combined limit. If his policy lists the maximum amount that the insurance company will pay for each of the specific types of liability, then he has a split limit. The recommended split limit minimum liability coverage limits are 100,000 per person and 300,000 per accident with 50,000 for property damage. Research and report on tips for keeping your premiums down: I think it is safe to say that we would all like to pay less on auto insurance. The article entitled How to Get Cheap Car Insurance gives you some tips; you can also Google the topic and see what else you can come up with. Report on one way that you can cut down on auto insurance costs.
One way to cut down on auto insurance costs is to shop around. Comparing quotes from multiple providers is highly recommended as each provider assesses your risk differently. Get at least three price quotes by calling companies directly or researching online. Keep in mind though that cheaper isn’t always better. You buy insurance to protect you so it is important to choose a company that is financially stable and reliable.
- Spring '08