E ALU ATIN G P E RS O N AL AU TO M O B I LE P O LI CY FE ATU RE S. Tucker Carson of Pittsburgh, Pennsylvania is a single, 40-year-old loan officer at a large regional bank; he has a 16-yearold son. He has decided to use his annual bonus as a down payment on a new car. One Saturday afternoon in late September, Tucker visits Decker Motors and buys a new car for

$32,000. To obtain insurance on the car, he calls his agent, Valerie Hurst who represents Shepard’s Insurance Agency, and explains his auto insurance needs. Valerie says that she’ll investigate the various options for him. Three days later, Tucker and Valerie get together to review his coverage options. Valerie offers several proposals, including various combinations of the following coverages: (i) basic automobile liability insurance, (ii) uninsured motorists coverage, (iii) automobile medical payments insurance, (iv) automobile collision insurance, and (v) comprehensive automobile insurance.

a. Describe the key features of these insurance coverages.

b. Are there any limitations on these coverages? Explain.

c. Indicate the persons who would be protected under each type of coverage.

d. What kind of insurance coverages would you recommend that Tucker purchase?

Explain your recommendation.

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