Let’s imagine you have just purchased a used car! Congratulations! Your used car is a 2014 Red Ford Focus. In order to drive your car, you must have auto insurance. In this activity, you will choose the coverage that meets your needs, but also satisfies your state’s requirement. You will look at 6 of the main types of auto insurance coverages. For the purposes of this activity, let’s assume the following:You are 18 years old Are driving a 2014 Red Ford FocusCommuting to work and school five days a week (15 miles each way)Expecting to drive 15,000 miles per yearResearch the minimum requirements for automobile coverage in your state. You are only required to choose a coverage option if it’s required in your current state. Identify the forms of insurance that are required out of the following:Bodily Injury LiabilityProperty Damage Liability Personal Injury Protection Uninsured/Underinsured Motorist CoverageCollisionComprehensiveBodily injury coverage helps you pay for another person’s physical injuries in a car accident when you are at fault. Review the options below. Write down the bodily injury coverage you would purchase. Briefly, describe why you choose this coverage.Bodily Injury Coverage Option 1Option 2Option 3Coverage LimitPer person/ per occurrence$25,000/$45,000$50,000/$100,000$125,000/$300,000Monthly Premium $25$60$85Property damage coverage helps you pay for another person's property (car, house, fence, mailbox, etc.) in a car accident when you are at fault. Review the options below. Write down the property coverage you would purchase. Briefly, describe why you choose this coverage.Property Damage CoverageOption 1Option 2Option 3Coverage Limit$15,000$30,000$75,000Monthly Premium $25$50$75Uninsured or under insured coverage covers repairs and other expenses to your car if another driver with not enough insurance injures you or someone you are riding with. Review the options below. Write down the uninsured or under insured coverage you would purchase. Briefly, describe why you choose this coverage.Uninsured/Under insured Motorist CoverageOption 1Option 2Option 3Coverage Limit$15,000/$30,000$50,000/$100,000$100,000/$300,000Monthly Premium$40$55$75Personal injury protection (PIP) can help cover some of your medical costs in a car accident. Remember you are not required to choose a coverage option that is not required in your state. Is your premium what you expected? Would you make any changes? Explain your answer. What do you think will happen to your monthly premium as you become older (and have no accidents)?

Question

Let’s imagine you have just purchased a used car! Congratulations! Your used car is a 2014 Red Ford Focus. In order to drive your car, you must have auto insurance. In this activity, you will choose the coverage that meets your needs, but also satisfies your state’s requirement. You will look at 6 of the main types of auto insurance coverages. For the purposes of this activity, let’s assume the following:You are 18 years old Are driving a 2014 Red Ford FocusCommuting to work and school five days a week (15 miles each way)Expecting to drive 15,000 miles per yearResearch the minimum requirements for automobile coverage in your state. You are only required to choose a coverage option if it’s required in your current state. Identify the forms of insurance that are required out of the following:Bodily Injury LiabilityProperty Damage Liability Personal Injury Protection Uninsured/Underinsured Motorist CoverageCollisionComprehensiveBodily injury coverage helps you pay for another person’s physical injuries in a car accident when you are at fault. Review the options below. Write down the bodily injury coverage you would purchase. Briefly, describe why you choose this coverage.Bodily Injury Coverage Option 1Option 2Option 3Coverage LimitPer person/ per occurrence$25,000/$45,000$50,000/$100,000$125,000/$300,000Monthly Premium $25$60$85Property damage coverage helps you pay for another person's property (car, house, fence, mailbox, etc.) in a car accident when you are at fault. Review the options below. Write down the property coverage you would purchase. Briefly, describe why you choose this coverage.Property Damage CoverageOption 1Option 2Option 3Coverage Limit$15,000$30,000$75,000Monthly Premium $25$50$75Uninsured or under insured coverage covers repairs and other expenses to your car if another driver with not enough insurance injures you or someone you are riding with. Review the options below. Write down the uninsured or under insured coverage you would purchase. Briefly, describe why you choose this coverage.Uninsured/Under insured Motorist CoverageOption 1Option 2Option 3Coverage Limit$15,000/$30,000$50,000/$100,000$100,000/$300,000Monthly Premium$40$55$75Personal injury protection (PIP) can help cover some of your medical costs in a car accident. Remember you are not required to choose a coverage option that is not required in your state. Is your premium what you expected? Would you make any changes? Explain your answer. What do you think will happen to your monthly premium as you become older (and have no accidents)?

Answer 1

For bodily injury coverage, I would choose Option 2 with coverage limits of $50,000 per person and $100,000 per occurrence. This option provides a higher coverage limit, which I believe is important in case of a more serious accident involving multiple individuals.

For property damage coverage, I would choose Option 2 with a coverage limit of $30,000. This option provides a higher coverage limit and would help cover damages to someone else's property in case of an accident.

For uninsured/underinsured motorist coverage, I would choose Option 3 with a coverage limit of $100,000/$300,000. This option provides the highest coverage limit and would ensure that I am adequately protected in case I am in an accident with an uninsured or underinsured driver.

As for personal injury protection (PIP), since it is not required in my state, I would not choose this coverage option. My premium is within my expected range, and I would not make any changes at this time. As I become older and have no accidents, I expect my monthly premium to decrease as insurance companies often offer lower rates to older and more experienced drivers.