Case
Auto Insurance for Dwight Fox
Dwight Fox is a 40-year-old loan officer at a large regional bank; he has a 16-year-old son. He has decided to use his annual bonus as a down payment on a new car. One Saturday afternoon he visits Unique Motors and buys a new car for
32,000. To obtain insurance on the car, Dwight calls his agent, Carla Dawson, who represents Brown’s Insurance Company, and explains his auto insurance needs. Carla says that she’ll investigate the various options for him. Three days later, Dwight and carla get together to review his coverage options. carla offers several proposals, including various combinations of the following coverages: (a) basic automobile liability insurance, (b) uninsured motorist’s coverage, (c) automobile medical payments insurance, (d) automobile collision insurance, and (e) comprehensive automobile insurance.
Critical Thinking Questions
1. Describe the key features of these insurance coverages.
2. Are there any limitations on these coverages? Explain.
3. Indicate the persons who would be protected under each type of coverage.
4. What kind of insurance coverages would you recommend that Dwight purchase? Explain your recommendation.