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The Personal Auto Policy contains several coverages that meet the insurance needs of typical insureds. For each of the following coverages, briefly describe the type of coverage provided, and give an example of a loss that would be covered.

a. Part A: Liability Coverage
b. Part B: Medical Payments Coverage
c. Part C: Uninsured Motorists Coverage
d. Part D: Coverage for Damage to Your Auto

User JeffHeaton
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Final answer:

The Personal Auto Policy offers coverage that includes Part A: Liability Coverage for damages the insured is responsible for, Part B: Medical Payments Coverage for medical expenses from an accident, Part C: Uninsured Motorists Coverage for protection against uninsured drivers, and Part D: Coverage for Damage to Your Auto for repairs or replacement of the vehicle.

Step-by-step explanation:

The Personal Auto Policy (PAP) is structured to provide different types of coverage for various insurance needs. Let's discuss the specific coverages outlined in your question:

Part A: Liability Coverage

Liability Coverage is a fundamental part of the Personal Auto Policy and covers damages for which an insured driver is legally responsible. This can include bodily injury to other parties or damage to their property resulting from an auto accident. An example of a covered loss would be if the policyholder is at fault for an accident that damages another person's car and injures the driver.

Part B: Medical Payments Coverage

Medical Payments Coverage provides for the medical expenses of the policyholder and their passengers regardless of who is at fault. For instance, if you and your passengers need medical attention for injuries sustained in an accident, this coverage can help pay for those expenses.

Part C: Uninsured Motorists Coverage

Uninsured Motorists Coverage protects the insured if they are involved in an accident with a driver who lacks adequate insurance. This coverage helps pay for the insured's losses. For example, if you are hit by a driver who does not have insurance and you sustain injuries, this coverage would help with medical bills.

Part D: Coverage for Damage to Your Auto

Coverage for Damage to Your Auto, also known as collision and other-than-collision (comprehensive) coverage, pertains to the repair or replacement of the insured's vehicle after an accident. A covered loss under this part would be if your car gets hit by a tree during a storm, causing damage to the bodywork.

User Robe Elckers
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