Presented By

Andrew Aguilar, Jimmy Hickert, Megan Rokusek

Insurance

Section 1

Vehicle Insurance

Risks of Having a Vehicle-could damage vehicle or others property

-vandals could steal or damage vehicle

-could be sued by others

Not Having Insurance = Greater Risk

-treating someone or paying for someone's things could cause you to lose all your assets

-Accidents are unavoidable and will happen

Motor Vehicle Risks

-person legally a fault is liable for damages and financial losses

-if you are found liable and have insurance

-provide legal defense

-they pay for all damages up to the limits

-individual states regulate laws related to vehicle insurance

Motor Vehicle Risks

Financial Responsibility-every state has a financial responsibility

law

-if you caused an accident and cannot pay, legal system takes action

-savings or property could be taken

-driver’s license suspended or taken away

Motor Vehicle Risks

Compulsory Insurance-most states require drivers to carry auto

insurance

-it’s compulsory that an automobile owner has insurance

-compulsory insurance laws may not allow a driver to register a car without proof of insurance

Motor Vehicle Risks

There are 2 categories of auto insurance

-Personal Injury Coverage

-Property Damage Coverage

Automobile Insurance Coverage

Personal Injury Coverage-Bodily Injury Liability

-is insurance that protects a driver from injuries or deaths for which the insured is at fault

-covers people in other cars, any passengers, and pedestrians

-insured and the insured immediate family are not covered

-coverage is expressed as 2 numbers

Automobile Insurance Coverage

-Medical Payments Protection

-policyholders and family members are covered if they are injured while riding in their car or another

-may also cover them if walking and hit by car

-policy protects guests in the insured car

-this protection covers medical, dental, ambulance, hospital, nursing, and funeral services

-payment is made no matter who is at fault

Automobile Insurance Coverage

-Uninsured Motorist Protection

-injuries can be caused by hit-&-run or drivers w/out insurance

-available only to people who hav bodily injury insurance

-covers policyholder, family members, & guests in car

-covers insured person only if uninsured is at fault

-payment is made no matter who is at fault

Automobile Insurance Coverage

Property Damage Coverage-Property Damage Liability

-protects driver against claims if insured car damages someone else’s property &

insured is at fault

-this doesn’t cover damage to the insured car

Automobile Insurance Coverage

-Collision Insurance-protects a car owner against financial loss

-doesn’t cover injuries to people or damage to others property

-Coverage is usually written w/ a deductible clause

Automobile Insurance Coverage

-Comprehensive Coverage

-protects the insured against almost all damage losses except those caused from a collision

-if car is stolen or destroyed amount paid wont = amount paid for car

-insurance pays for estimate value of car

Automobile Insurance Coverage

1st yr 2nd yr 3rd yr$0

$5,000

$10,000

$15,000

$20,000

14,50010,500

8,000

$15,000 Car

No-Fault Insurance Laws

-adopted to reduce insurance costs and speed up claims

-people in accident collect for their financial losses from their own insurance companies

- types of loses include

-medical bills

-loss of wages

-other related expenses

Automobile Insurance Coverage

Insurance Rates

-factors to determine automobile insurance cost

-age

-purpose for which you use the car

-number of miles you drive each yr

-value and type of car

-community in which you live

-amount of coverage and deductibles

Automobile Insurance Costs

Reducing Auto Insurance Costs

-planning insurance purchases = saved money

-companies will decrease extra charges for young drivers who complete an educational course

-young drivers, in some states, can receive student dicounts

Automobile Insurance Costs

Selecting a Company

-COMPARE rates

-companies may offer lower rates

-family insures more than one car

-have different type of insurance in company

-buying packages in bigger bulks

-buying a month is more expensive than a yr

Automobile Insurance Costs

Assigned-Risk Plans

-every state has this

-company assigned a number of high-risk drivers

-based on number of customers

-insure a fair portion of them

-drivers in high risk categories pay much higher premiums

Automobile Insurance Costs

Insurance for Others Vehicles

-most important insurance

-bodily injury liability

-property damage liability

-collision

-comprehensive physical damage insurance

-engine size and value of car are key factors in determining price

Automobile Insurance Costs