Auto and Home Insurance

Auto Insurance

Pre- “Qs?”• What are the basic types of car

insurance coverage?• What are some ways to control your

car insurance premiums?• What steps should you take if you

have an take if you have an accident?

Competing Auto Insurance Commercials

• All-State -Pink SUV Mayhem: https://www.youtube.com/watch?v=5-Sjld5yy3Q

• All-State - GPS Mayhem: https://www.youtube.com/watch?v=tZXM_g3mqew&NR=1

• State Farm® - "Magic Jingle Anniversary”: https://www.youtube.com/watch?v=I79Jmgb8nyw

• Progressive: https://www.youtube.com/watch?v=DcmdW4H_WSQ

Auto Basic Coverage• Liability Coverage means you are

responsible for damages caused. It protects you (the insured) against any claims for injury or damage to another person’s property.“Two types of Liability”– Bodily injury liability – Property insurance

• Both are required

Liability CoverageBodily Injury Liability Coverage• If the car injures or

kills someone else (passengers in your own vehicles, or pedestrians) bodily injury liability coverage will pay for the expenses related to the accident.

Property Damage Liability Coverage• When personal

property is damaged in an accident, and you are at fault, property damage liability coverage pays for the repairs or replacement.

Optional Coverage• Collision Coverage• Comprehensive Coverage• Medical Payments and Personal

Injury Protection (PIP)• Uninsured/Underinsured Motorist

Coverage

Additional Options• Towing Coverage and • Rental Reimbursement

Premium• The rate charged for an insurance

policy.Factor that Effects the Premium:– The Driver–Where you Live– How Much You Drive– The Vehicle

Controlling Insurance Costs

• Keep your drive record clean • Qualify for a good student discount• Chick for safety feature discounts• Take advantage of multiple-car or

multiple-policy discount• Consider increasing deductibles• Compare options

If an Accident Occurs!1. First , be safe. 2. Call the police and

ambulance3. Exchange Information4. Call your insurance

company5. Know your insurance

coverage.

Remember that insurance claims are not always settled quickly and to the satisfaction of the policyholder.

Post – “Qs?”• What is the basic coverage?• What are some additional coverage?• What is a premium?• If you are in a car accident name

some steps you must take.

Assignment• Research 3 insurance agencies of

your own choice. For each agencies, name 3 coverage policies that are offered by the company. Use Microsoft Words and turn in at the end of class.

Home Insurance

Objective• Given instruction, the learner will

explore the functions and benefits of different types of insurance with 85% accuracy.

Competing Homeowner Insurance Commericals

• Allstate TV Ad: Lawn Game Mayhem https://www.youtube.com/watch?v=1DU5LKoC1A8

Pre – “Qs?”• What four types of coverage are found in a

standard homeowner’s policy?• What kinds of things are covered under the

liability portion of homeowner’s policy?• Why do renters need property insurance?• What kinds of discounts are available to

reduce the cost of a homeowner’s policy?• What are three situations that are

considered "high risk” by insurance companies?

Four Types of Homeowner’s Coverage

1. Coverage on the physical structure of your home.

2. Personal property coverage, ranging from clothes to furniture.

3. Liability coverage in case someone is injured on your property or hurt by a family member or a pet

4. Coverage for living expenses if you have to live elsewhere while damage is required

Liability Coverage• It provides protection against

lawsuits for injuries or property damage caused by the policyholder, family members, and even pets

• Basic Limit is $100,000, but $300,000 is recommend. There is no deductible.–What Liability Coverage Covers:• Cost of Defending you in Court and for any

damages the court says you owe• No-fault Medical Coverage

Additional Living Expenses Coverage

• Renter Insurance– Having renter’s insurance can give you

significant protection at a reasonable cost.– Tenant’s form (HO-4) is designed to

provide coverage for renters need most.• Covers loss and damage of personal

possessions due to theft, fire, smoke, lightning, wind, and water.• The Liability portion protects you and the

family members living with you• It will pay for defense in court

Discounts• Multiple-Policy Discounts• Home Security Discounts• Discounts for the of fire-resistant

building materials

Three High Risk Situations

• Your home is in an area subject o severe weather, such as hurricanes

• You live in an older home with outdated electrical wiring, an old heating system, or old plumbing. Higher risk for water and fire damage.

• You live in an area known for vandalism, theft, or other crime.

Post “Qs?”• Name a type of coverage that is

found in the homeowner’s policies.• When is renters insurance used?• What kinds of discounts are available

for homeowner’s insurance?• Name a high risk situation.

Assignment• Research 3 agencies that support

homeowner’s insurance, and on Microsoft Words 2007 list 3 coverage that the company offers.

Reference• Personal Finances A Lifetime

Responsibility