Auto Insurance

http://www.youtube.com/watch?v=UB3oEHzakOw

Automobile Insurance Why do we need it?

Auto crashes - leading cause of death Teens account for 20% of all accidents Economic Cost - $150 billion/year

It’s required! Liability insurance required in most

states

Risk Management $$$Risk Management $$$

Property Damage LiabilityCovers damage that you cause to other people’s property as a result operating a motor vehicleRequired by law

Bodily Injury Liability

Injury that you cause to other people as a result operating a motor vehicle.Required by law

Collision

Protects against damage to YOUR vehicle due to a traffic accident and its YOUR fault.Not required by states, BUT required by your lender!Insurance will only pay for damages up to current value of your car

TOTAL LOSS

Medical Payments

Covers injuries to you or your passengers due to a traffic accident regardless of who is at fault.

Comprehensive

Protects against loss to your vehicle (physical damage) due to non-collision causes:

Theft Vandalism Fire Hail Damage

Uninsured / Underinsured

Covers injuries to you, your family or passengers or damages to your car when in an accident caused by an uninsured or underinsured driver

Coverage Who’s fault What’s covered

Bodily Injury Liability

YOURS The other PEOPLE

Property Damage Liability

YOURS The other CAR/PROPERTY

Medical Payments Doesn’t matter

You and those in your car

Uninsured/

Underinsured motorist

THEIRS Compensates for anything the other drive was supposed to be responsible for

Comprehensive Nature, theft, vandalism

Your car

Collision YOURS Your car

What affects insurance rates?

Higher deductibles = Lower Premium You take on more of the risk

Older cars: Can you drop those Collision and Comprehensive Coverages – assess the risk!

Multi-car Discounts Increase amount of coverage

What affects insurance rates?

Marital Status: Singles pay more Grades: Good Grades= Lower Premiums Driving Record

Many accidents = Higher Premium Sport cars= Higher rates

Color not a factor Age: Older drivers (over 25) get better rates Residence/Commute- city or suburbs,

distance

Who Pays the Most?

UNMARRIED MALE DRIVERS, AGES 16-25

How can you lower? Be a responsible driver Drive a moderately priced car

Discounts for certain safety features Good grades Live in safe neighborhoods Increase the size of your deductible Live responsibly

What to Do in Case of an Accident

Other Tips

Stay Calm Do Not admit guilt Do Not reveal how much coverage

your have Take pictures Do Not accept cash

http://www.youtube.com/watch?v=78fJFbO81DY

Split Limits

50 / 150 / 75

1#- Bodily injury caused to one person2# Bodily injuries caused to everyone3# Total amount of property damage