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Motor Vehicle Insurance
Every state in the United States has a financial responsibility law, which requires drivers to prove that they can pay for damage or injury caused by a motor vehicle accident. Most states require that drivers have motor vehicle insurance. Be a smart consumer and understand motor vehicle insurance, so you can shop around for the best rates.
Design a Chart Illustrate the following information:
Bodily Injury Liability
- Covers physical injuries caused by a motor vehicle accident for which you were responsible. Liability coverage is usually shown in numbers such as 100/300/50, which represent thousands of dollars of coverage. The first number-100-represents $100,000 as the maximum amount the insurance will pay for the injuries of one person in any one accident. The second number-300-represents $300,000, which is the maximum amount the insurance company will pay for all injured parties in any one accident. The third number-50-represents $50,000, which is the maximum amount the insurance company will pay for damage to the property of others.
- Medical payments coverage is for anyone injured in your vehicle.
- Uninsured motorists protection covers you and your family members if you are in an accident with an uninsured hit-and-run driver.
Property Damage Coverages
- Property damage liability applies when you damage the property of others.
- Collision insurance covers damage to your vehicle.
- Comprehensive physical damage coverage protects you if your vehicle is damaged in a nonaccident situation, such as fire or vandalism.
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