1. Auto Insurance Chapter - 04

2. Types Automobile Coverage Automobile Liability Insurance Medical Payments Coverage Physical Damage Coverage Uninsured Motorists Coverage

3. 1. Automobile liability insurance: The insurance protects the insured against loss arising from legal liability when his or her automobile injures someone or damages another’s property. This coverage written subject to “split limits,” usually expressed as10,000/$20,000/$5000, or more simply as $10/$20/$5. 2. Medical Payments Coverage: The coverage reimburses the insured and members of the insured’s family for medical expenses that result from automobile accidents. The protection also applies to other occupants of the insured’s automobile. It is written with a maximum limit per person per accident, which usually ranges from $1000 to $5000.

4. 3. Physical Damage Coverage: The coverage is (1) Other Than Collision (formerly called Comprehensive) and (2) Collision. Collision, as the name implies, indemnifies for collision losses; Physical damage coverage applies to the insured auto regardless of fault. If the other driver is at fault, the insured who carries collision coverage has the option of proceeding against the other driver or collecting under his or her own collision and permitting the insurance company to subrogate. If the other driver is held liable, his or her property damage liability coverage will pay the loss.

5. 4. Uninsured Motorists Coverage: The coverage is an imaginative form of auto insurance under which the insurer agrees to pay the insured, up to specified limits, the amount the insured could have collected from a negligent driver who caused injury, when that driver is uninsured or is guilty of hit and run. Uninsured motorists coverage usually has the same limits as the bodily injury coverage in the liability section of the policy.

6. Duties after an Accident or Loss 1.Cooperate with the insurer in the investigation, settlement, or defence of any claim. 2.Promptly send the insurer copies of any notices or legal papers received in connection with the accident or loss. 3.Submit to physical examinations by physicians selected by the insurer as often as the insurer reasonably requires. The insurer pays the cost of the examinations. 4.Authorize the insurer to obtain medical reports and other pertinent records. 5. Submit a proof of loss when required by the insurer.