Page 9 - Chris Book.docx

Collision Coverage. Collision coverage covers an insured
party’s own vehicle if he or she was either at fault or if fault cannot be

determined for some reason. For example, if Negligent Ned runs into your
vehicle, Negligent Ned will need to use his collision coverage to have his
vehicle repaired or replaced. Collision coverage is typically subject to a

deductible, unlike liability coverage. Collision coverage is an optional
coverage.

Comprehensive Coverage. Comprehensive coverage provides
insurance for losses caused by occurrences such as theft, vandalism, fire,
lightning, or other unpreventable events. Comprehensive coverage also

typically covers property damage sustained as a result of colliding with an
animal (bird, deer, etc.). Comprehensive coverage is also an optional
coverage.

Medical Payments Coverage. Medical payments coverage is
another optional coverage that covers medical bills that an insured party
incurs due to an accident. Note that this coverage is not “third-party

coverage,” meaning it typically only applies to the holder of the policy or
anyone the policy defines as “insured.” For example, if Negligent Ned

causes an accident with you, Negligent Ned may use his medical payments
coverage to cover his personal medical expenses. You may also use
medical payments coverage from your own insurance company to pay

your medical bills while waiting to settle your injury claim against Ned
and his insurance company. Medical payments coverage is highly

recommended.
Uninsured (UM) or Underinsured (UIM) Motorist Coverage.
Uninsured motorist coverage allows an injured party to use his or her own

insurance coverage in case the at-fault party either has no insurance or
does not have enough insurance to cover a claimant’s damages (meaning
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