1. Section 16.2

2. What You’ll Learn
How to explain the purpose of financial responsibility law (p. 351)
How to describe the types of automobile insurance (p. 351)

3. Why It’s Important
Knowing about the different types of automobile insurance coverage will help you buy the best policy for your needs.

4. Legal Terms
financial responsibility law (p. 351)
bodily injury liability insurance (p. 352)
medical payments insurance (p. 352)
uninsured motorist insurance (p. 352)

5. Legal Terms
underinsured motorist insurance (p. 352)
property damage liability insurance
(p. 353)
collision insurance (p. 353)
comprehensive insurance (p. 354)
no-fault insurance (p. 355)

6. Section Outline Financial Responsibility
Types of Motor Vehicle Insurance
Bodily Injury Coverage
Property Damage Coverage
No-Fault Insurance

7. Pre-Learning Question
What is a financial responsibility law?

8. Financial Responsibility
Every state has a financial responsibility law, which requires vehicle owners to prove they can pay for damages or injury caused by an automobile accident.

9. Financial Responsibility
You may show proof of financial responsibility by
Depositing money.
Depositing bonds or other securities.
Carrying insurance.

10. Financial Responsibility
As of 2000, more than 40 states had laws requiring people to carry automobile insurance.

11. Pre-Learning Question
What are the different types of motor vehicle insurance?

12. Types of Motor Vehicle Insurance
16.2
Types of Motor Vehicle Insurance

13. Bodily Injury Coverage
The main types of bodily injury coverage are
Bodily injury liability insurance
Medical payments insurance
Uninsured motorist insurance
Underinsured motorist insurance

14. Bodily Injury Coverage
Bodily injury liability insurance protects the insured against claims or lawsuits for injuries or death caused by negligence.

15. Bodily Injury Coverage
Medical payments insurance pays for medical, and sometimes funeral, expenses resulting from bodily injuries to anyone occupying the policyholder’s car in an accident.

16. Bodily Injury Coverage
Uninsured motorist insurance provides protection when the insured is injured in an automobile accident that is caused by a driver who has no insurance.
It also protects parties who are injured by a hit-and-run driver.

17. Bodily Injury Coverage
Underinsured motorist insurance protects you when another driver has insurance, but not enough to pay for any injuries.

18. Property Damage Coverage
The main types of property damage coverage are
Property damage liability insurance
Collision insurance
Comprehensive insurance

19. Property Damage Coverage
Property damage liability insurance applies when you damage the property of others, including such things as another car, a house, a telephone pole, or a tree.

20. Property Damage Coverage
Collision insurance covers damage to your vehicle when it is in an accident and pays for vehicle repairs, regardless of who was at fault.

21. Property Damage Coverage
Comprehensive insurance covers damage to your vehicle from sources other than collision, including fire, theft, lightning, flood, hail, windstorm, riot, and vandalism.

22. No-Fault Insurance
Under no-fault insurance, regardless of who caused the accident, all drivers involved collect money from their own insurance companies.

23. No-Fault Insurance
Because no-fault systems vary by state, you should investigate the coverage provided by no-fault insurance in your state.

24. Match the type of automobile insurance with its description.
1. Bodily injury
A. Pays for medical expenses resulting from bodily injuries to anyone occupying the policyholder’s car in an accident.
Medical Payment
B. Covers damage to your vehicle when it’s in an accident and pays for vehicle repairs.

25. continued
3. Collision
C. covers damage to your vehicle from sources such as fire, theft, and hail.
4. Comprehensive
D. Insurance that protects the insured against claims for injuries caused by negligence.

26. ANSWER D A B C

27. Reviewing What You Learned
Section Assessment
Reviewing What You Learned
Describe bodily injury liability insurance. What does it cover?

28. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
It protects the insured against claims or lawsuits for injuries or death caused by negligence.

29. Reviewing What You Learned
Section Assessment
Reviewing What You Learned
What type of insurance protects parties who are injured by hit-and-run drivers?

30. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
Uninsured motorist insurance.

31. Critical Thinking Activity Fair Rates
Section Assessment
Critical Thinking Activity
Fair Rates
Teenage boys pay a much higher rate for automobile insurance than teenage girls do. Is this fair? Explain why or why not?

32. Critical Thinking Activity Fair Rates
Section Assessment
Critical Thinking Activity
Fair Rates
Then take an informal survey of the students in your class who have had tickets or accidents. Are the boys or girls better drivers?

33. Critical Thinking Activity Answer Fair Rates
Section Assessment
Critical Thinking Activity Answer
Fair Rates
Answers will vary, but should indicate the number of people actually surveyed.

34. Legal Skills in Action Motorcycle Helmet Laws
Section Assessment
Legal Skills in Action
Motorcycle Helmet Laws
Florida recently passed a law allowing people to ride motorcycles without wearing helmets. However, Florida law requires unprotected riders to carry medical insurance in case of injury.

35. Legal Skills in Action Motorcycle Helmet Laws
Section Assessment
Legal Skills in Action
Motorcycle Helmet Laws
With a partner, debate whether people should be allowed to ride motorcycles without helmets. Does the requirement for insurance make a difference?

36. Legal Skills in Action Answer
Section Assessment
Legal Skills in Action Answer
Motorcycle Helmet Laws
Debates will vary, but should recognize that motorcyclists need to be both personally and financially responsible for their choices.

37. End of Section 16.2