Tanya, age 20, is a college student who recently purchased her first car from a friend who had financial problems. The vehicle is a high-mileage, 2004 Toyota Corolla with a current market value of $2,000. Assume you are a financial planner and Tanya asks your advice concerning the various coverages in the PAP.
a. Briefly describe the major coverages that are available in the PAP.
b. Which of the available coverages in (a) should Tanya purchase? Justify your answer.
c. Which of the available coverages in (a) should Tanya not purchase? Justify your answer.
d. Assume that Tanya purchases the PAP coverages that you have recommended. To what extent, if any, would her insurance cover the following situations?
1. Dani, Tanya's roommate, borrows Tanya's car with her permission and injures another motorist. Dani is at fault.
2. Tanya is driving under the influence of alcohol and is involved in an accident where another motorist is seriously injured.
3. During the football season, Tanya charges a fee to transport fans from a local bar to the football stadium. Several passengers are injured when Tanya suddenly changes lanes without signaling and hits another car.

4. Tanya drives her boyfriend's car on a regular basis. While driving the boyfriend's car, she is involved in an accident in which another motorist is injured. Tanya is at fault.
5. Tanya rents a car in England where she is participating in a summer study abroad program. The car is stolen from a dormitory parking lot.
e. Tanya also owns a motorcycle. To what extent, if any, does Tanya's PAP cover the motorcycle?