Reference no: EM132866657

Read the following case study and answer the proceeding questions:

• Michelle, age 25 is a newly graduate student who recently purchased her first car as a graduation gift. The vehicle is a 2007 Toyota Corolla with a market value of $10,000. Assume that you are an insurance agent and Tanya is inquiring about an insurance policy.
• Describe the major coverages that are available in the PAP (Personal Auto Policy)
• Which coverage should Tanya purchase?
• Which coverages would you recommend Michelle not purchasing?

Assuming that Michelle has taken your advise and purchased the recommended coverages. Explain what coverages would cover the following incidents.

• Karen borrowed Michelle vehicle with her permission to run to the grocery store. On the way back to Michelle's apartment, Karen rear ends another motorist. To prevent any issues with the insurance company, Michelle files a claim stating that she was the driver. Who is at fault for this accident? What are her obligations as the insured? What are the obligations of the insurance company? What crime can Michelle be charged with for stating that she was the driver?
• Michelle decides to go to happy hour with friends and has a few drinks. She decides to leave early due to feeling somewhat intoxicated. While backing out of her parking spot, she hits a pedestrian.
• After being charged with DUI fines, Michelle has been facing somewhat of a financial hardship. She decides to start driving for Uber. On the way from picking up a party of three from the airport, Michelle changes lanes to avoid missing her exit. Michelle misjudged her distance from another vehicle and caused a collision. Who is at fault for this accident? 
• This last accident caused Michelle's car to be totaled. She then begins to drive her aunt Maria's car to work. While replying to a text message, Michelle was not paying attention and hit a pedestrian named, David. David was transported to the hospital from the scene due to severe injuries.  
• Michelle decides to go to Mexico for vacation. While in Mexico she rented a car to travel across country. While parked at a park, the vehicle was stolen. Who is at fault? (For this question: You will have to research if insurance companies cover losses in Mexico. Also, include the website of the resource used to answer this question).
• After returning to the United States, Michelle decides that she will take public transportation until she is able to purchase another vehicle. As she is crossing Meridian street, she is struck by a motorist. Unfortunately, she is transported immediately to the hospital for treatment. Who is at fault for this accident? Will Michelle's coverages extend to her medical treatment?
• Michelle's friend Matt comes to picks her up after being released from the hospital. As they are turning in the CVS parking lot to pick up Michelle prescription, a bus rear ends Matt's vehicle. Who is at fault for this accident?  
• Michelle decides to purchase a motorcycle. To what extent, does her coverages apply to her motorcycle?