Final answer:
The coverage section of Babette's auto policy that could help with her medical costs is Personal Injury Protection (PIP) or Medical Payments Coverage (MedPay). Underinsured motorist coverage might also apply if the at-fault driver's insurance is insufficient. Her insurance works on the principle that everyone's premiums collectively cover the costs of all insured losses.
Step-by-step explanation:
The coverage section of Babette's auto policy that could help pay for her medical costs after being struck by a car is likely the Personal Injury Protection (PIP) or Medical Payments Coverage (MedPay), depending on her state and the specifics of her policy. These coverages are designed to pay for medical expenses of the policyholder and their passengers, regardless of who is at fault in an accident. If Babette's damages exceed the at-fault driver's insurance limits, her own underinsured motorist coverage might also come into play to cover the remaining expenses.
Using the simplified example of automobile insurance given, if each of the 100 drivers pays a $1,860 premium each year, it ensures that the insurance company collects enough to cover the costs of accidents. This same principle applies to personal injury cases where the victim's own insurance provides coverage for unforeseen accidents, regardless of fault.