Auto insurance basics (abbreviated)

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    19-Jan-2015

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Learn the basics about auto insurance from PEMCO Insurance. This abbreviated version is geared toward high school students, or anyone else who wants to know the basics: how insurance works, why you need it, how to keep your rates down, and types of auto insurance coverage.

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  • 1. Auto insurance basicsfor teen drivers

2. Youll learn How insurance works, why you need it How to keep auto insurance rates down Types of auto insurance coverage 3. How does insurance work? People pool money to guard against risk The money pool pays for big losses Insurance is not an investment Where does $ go if you have no claim? People with higher risk pay more 4. How to keep insurance rates down Good grades (3.0 and up) help the most The type of car does matter Drive safely avoid tickets, accidents Do not phone or text while driving Take advantage of discounts 5. How to keep insurance rates down Speeding tickets are a good predictor offuture accidents With each ticket you get, the likelihood ofa future accident increases You pay higher premiums if you havetickets and accident 6. Auto policy coverages: Collision Covers YOUR car- regardless of fault- when your car hits another object,gets hit, or overturns- a deductible applies 7. Auto policy coverages: Comprehensive Required if you have a loan May not be needed on older, lower-valued cars Covers vandalism, theft, acts of nature(weather, fire, etc.) 8. What do you think?True or false: All cars require Comprehensive andCollision coverage.FALSE. If theres no loan, Comp andCollision may not be needed onolder, lower-value cars. 9. Auto policy coverages: Bodily Injury Liability Covers YOU for injury you cause tosomeone else injury for which you arefound liable Required by law 10. Auto policy coverages:Property Damage Liability Covers YOU for damage you cause tosomeone elses property, damage forwhich youre found liable Required by law 11. Auto policy coverages:Underinsured Motorist Bodily Injury Insurance is required by law 20-35% of drivers dont carry anyinsurance Others carry only low limits 12. Underinsured Motorist Bodily Injury Protects YOU if someone without enoughinsurance injures you - medical costs - lost wages - pain and suffering 13. Auto policy coverages: Underinsured Motorist Property Damage Protects YOU if someone without any orenough insurance damages your car 14. Auto policy coverages:Personal Injury Protection Protects YOU regardless of who is atfault in accident Medical coverage fills gaps in standardmedical plans Replaces income while you cant work 15. Want to learn more?Thats just a tiny sample of our full presentation.To learn more, schedule a speaker from PEMCOto come speak to your class or PTSA.We can accommodate most requests in the PugetSound area, and some requests statewide.Contact: jonosterberg@pemco.com 16. The most important piece ofsafety equipment in any vehicleis the one behind the wheel.