S&P's Financial Focus

Motor Vehicle Insurance

Every state in the United States has a financial responsibility law, which requires drivers to prove that they can pay for damage or injury caused by a motor vehicle accident. Most states require that drivers have motor vehicle insurance. Be a smart consumer and understand motor vehicle insurance, so you can shop around for the best rates.

Design a Chart Illustrate the following information:

Bodily Injury Liability

Covers physical injuries caused by a motor vehicle accident for which you were responsible. Liability coverage is usually shown in numbers such as 100/300/50, which represent thousands of dollars of coverage. The first number-100-represents $100,000 as the maximum amount the insurance will pay for the injuries of one person in any one accident. The second number-300-represents $300,000, which is the maximum amount the insurance company will pay for all injured parties in any one accident. The third number-50-represents $50,000, which is the maximum amount the insurance company will pay for damage to the property of others.

Medical payments coverage is for anyone injured in your vehicle.

Uninsured motorists’ protection covers you and your family members if you are in an accident with an uninsured hit-and-run driver.

Property Damage Coverages

Property damage liability applies when you damage the property of others.

Collision insurance covers damage to your vehicle.

Comprehensive physical damage coverage protects you if your vehicle is damaged in a nonaccident situation, such as fire or vandalism.

Standard and Poor’s publishes the globally recognized S&P 500® financial index and provides credit ratings. It also gathers financial statistics, information, and news, and analyzes this data to help individuals, companies, and governments make financial decisions. Go to www.standardandpoors.com to learn more about this company.