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Write a 1000-word analytical report on the following auto in

Write a 1000-word analytical report on the following auto insurance policy for Abraheamm M Alshahrani: Name: ABRAHEAMM M ALSHAHRANI; Address: 1000 La Fonda Dr Apt L, Las Cruces, NM 88001; Insurer: GEICO Secure Insurance Company, PO Box 509090 San Diego, CA; Vehicle: 2002 Hyundai Elantra GLS, VIN KMHDN45D52U439885; Coverages: Bodily Injury Liability (BI) $25,000/$50,000; Property Damage Liability (PD) $10,000; Uninsured Motorist Bodily Injury $25,000/$50,000; Uninsured Motorist Property Damage $10,000. Explain each coverage, assess adequacy of limits for New Mexico, describe legal implications, identify exposures, and provide recommendations to improve protection. Cite relevant regulations, statutes, and industry sources.

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Executive summary

This report analyzes the provided auto insurance policy for Abraheamm M Alshahrani of Las Cruces, NM, issued by GEICO Secure Insurance Company for a 2002 Hyundai Elantra GLS (VIN KMHDN45D52U439885). Coverages listed are Bodily Injury Liability (BI) $25,000 per person / $50,000 per accident, Property Damage Liability (PD) $10,000, Uninsured Motorist Bodily Injury (UMBI) $25,000/$50,000, and Uninsured Motorist Property Damage (UMPD) $10,000. The analysis explains each coverage, assesses adequacy relative to New Mexico legal context and typical exposures, and offers actionable recommendations to improve protection for the insured (Insurance Information Institute, 2023; New Mexico Office of Superintendent of Insurance, 2023).

Policy components and plain-language explanation

Bodily Injury Liability (BI) covers medical expenses, lost wages, and legal defense if the insured is legally responsible for injuring others in an at-fault accident. The policy limit is $25,000 per injured person and $50,000 per accident, meaning the insurer will pay up to those amounts for third-party bodily injury claims (Insurance Information Institute, 2023).

Property Damage Liability (PD) covers repair or replacement of other people’s property (typically vehicles, fences, structures) when the insured is at fault. The listed PD limit is $10,000, which is applied per accident (Insurance Information Institute, 2023).

Uninsured Motorist Bodily Injury (UMBI) protects the insured and covered passengers if injured by a driver who lacks liability insurance or is a hit-and-run driver. The UMBI limits mirror the BI limits here ($25,000/$50,000). Uninsured Motorist Property Damage (UMPD) covers vehicle or property damage caused by an uninsured driver up to $10,000 (NAIC, 2021).

Assessment of adequacy in New Mexico

The stated BI/PD limits ($25,000/$50,000 and $10,000) correspond to commonly observed minimums and align with basic legal requirements in many jurisdictions (New Mexico Office of Superintendent of Insurance, 2023). Carrying only minimum statutory limits generally meets legal obligations but often leaves substantial exposure for serious crashes. Medical costs for a single severe injury can exceed $25,000 easily; major trauma, long-term care, or lawsuits can result in judgments far above policy limits (Consumer Reports, 2022).

Property damage limits of $10,000 are low relative to the costs of repairing or replacing many vehicles, particularly if the other vehicle is newer or has higher repair costs. Similarly, UMBI matching the BI limits is helpful, but if the uninsured at-fault driver causes catastrophic injuries, UMBI at minimum levels may still leave gaps (NAIC, 2021; Insurance Information Institute, 2023).

Legal implications and exposures

If an at-fault accident results in medical bills or claims exceeding policy limits, the insured’s personal assets can be at risk for the uninsured portion of a judgment. New Mexico law allows injured parties to pursue judgments beyond the policy; insurers pay only up to policy limits (New Mexico Statutes; Cornell LII, 2023). This exposure is particularly important for BI limits set at $25k/$50k because a single catastrophic injury can easily generate six-figure medical and liability claims (NHTSA, 2022).

Low PD limits can cause disputes if the other party’s repair or total-loss valuation exceeds $10,000. Even with UMBI/UMPD, uninsured or underinsured opponents can create recovery gaps, and stacked or higher UM limits can be necessary for adequate protection (NAIC, 2021).

Risk analysis specific to the insured

The insured’s vehicle is a 2002 Hyundai Elantra GLS. While older vehicles reduce replacement-cost exposure to some extent, bodily injury costs and third-party property damage remain significant risks irrespective of the insured’s own vehicle age (IIHS, 2022). The insured lives in Las Cruces, NM; local traffic patterns, weather, and incidence of uninsured drivers in the region should be considered when choosing limits and UM coverage (New Mexico Department of Transportation, 2023).

Recommendations to improve protection

  • Increase liability limits. Raise BI limits to at least $100,000 per person and $300,000 per accident (100/300) and PD to at least $50,000. Higher limits (e.g., 250/500/100) provide stronger protection against judgments and are affordable for many drivers (Consumer Reports, 2022; AAA, 2021).
  • Add or confirm collision and comprehensive coverage. If not already carried, these will help pay for repairs to the insured’s vehicle after collisions, theft, or weather-related loss—reducing potential uninsured out-of-pocket costs (GEICO, 2024).
  • Increase uninsured/underinsured motorist limits and consider stacking. Match UM limits to the higher liability limits and, where allowed, stack coverage across multiple vehicles or policies to expand recovery options (NAIC, 2021).
  • Purchase an umbrella policy. A $1 million umbrella policy can protect personal assets by providing excess liability coverage when primary auto limits are exhausted (Insurance Information Institute, 2023).
  • Review deductibles and premiums. Balance premium affordability with reasonable deductibles to ensure collision/comprehensive are usable when needed (Consumer Reports, 2022).
  • Regular policy review and documentation. Review coverages annually, maintain accurate records of vehicles and drivers, and discuss discounts (safe driver, multi-policy) with the insurer (GEICO, 2024).

Conclusion

The current GEICO policy for Abraheamm M Alshahrani provides basic legal protection with BI $25,000/$50,000 and PD $10,000 and includes matching uninsured motorist coverages. These minimum levels satisfy baseline requirements but expose the insured to significant financial risk in the event of serious injury or high-value property damage. Increasing liability and UM limits, adding collision/comprehensive where appropriate, and considering an umbrella policy are cost-effective ways to reduce exposure and protect personal assets. A policy review with an insurance professional and comparison of quotes can implement these recommendations while identifying available discounts (Insurance Information Institute, 2023; GEICO, 2024).

References

  • Insurance Information Institute. Auto Insurance Basics. 2023. https://www.iii.org
  • New Mexico Office of Superintendent of Insurance. Auto Insurance Information. 2023. https://www.osi.state.nm.us
  • National Association of Insurance Commissioners (NAIC). Understanding Uninsured Motorist Coverage. 2021. https://www.naic.org
  • IIHS — Insurance Institute for Highway Safety. Crash and Insurance Data. 2022. https://www.iihs.org
  • NHTSA. Traffic Safety Facts and Economic Impact. 2022. https://www.nhtsa.gov
  • GEICO. Understanding Your Auto Insurance Policy. 2024. https://www.geico.com
  • Consumer Reports. How Much Car Insurance Coverage Do You Need? 2022. https://www.consumerreports.org
  • Cornell Legal Information Institute. Uninsured Motorist Liability and State Law Summaries. 2023. https://www.law.cornell.edu
  • New Mexico Statutes Annotated. Motor Vehicle Financial Responsibility Requirements. 2024. https://www.nmlegis.gov
  • American Automobile Association (AAA). How Much Liability Insurance Do I Need? 2021. https://www.aaa.com

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