AUTO INSURANCE

What is: A policy provision that eliminates coverage?Exclusions: eliminates coverage that should be provided by other policies or is catastrophic or uninsurable.

What is: The glossary of terms used in a policy?Definitions

What is: Where the insured’s address is found?Declarations: front page of the policy where you find name, address, description of vehicles and other personal information.

What is: A broad description of what the insurer will do?Insuring Agreement: broad statement of insurance company’s obligations along with responsibilities of the insured. “you pay premium we will pay claims”

What is: A document that changes an insurance policy?Endorsements: Modifies the policy to accommodate insured’s special needs.

What is: A requirement that must be met before the policy will pay?Conditions: coverage is provided only under certain conditions.

NAME THAT TERM

Individuals Married coupleUnrelated couple if both are named

insured

Car, van, station wagon, or SUVPickup or truck under 10,000 pounds and

not used in delivery

WHO CAN PURCHASE AN AUTO POLICY?

Provides protection when you are responsible to someone else for injury or damage due to car accident.

Coverage is provided when:You or family member is driving your own carYou are driving someone else’s vehicleSomeone is driving your car with your permission

You are driving rental vehicleYou are driving any vehicle

LIABILITY COVERAGE

Who do you think can drive your car?

The following people can drive your car: Anyone you give permission to A family member (someone related to by blood,

marriage or adoption) Spouse You!

Why should you be selective in who drives your car?

What can be long term consequences for letting the wrong person drive your car?

WHO CAN DRIVE MY CAR?

YES! You are protected by your car insurance when driving another

person’s vehicle. The vehicle owner’s insurance pays first then your insurance pays

after. This helps you when the vehicle owner has low limits, 25/50/20, or

if they have no insurance at all.

DOES MY INSURANCE COVER ME IN SOMEONE ELSE’S VEHICLE?

If you trade your vehicle in you should have the same coverage as the vehicle you traded. Warning: if you are getting a brand new

car you may want to increase your coverage e.g. purchasing comprehensive & collision coverage

What if I don’t trade the vehicle in but instead purchase another vehicle- is there coverage for this new vehicle? There is coverage but look at your

policy as it may not be enough.

Call your insurance agent before you purchase the automobile!

PURCHASING A NEW VEHICLE- IS THERE ANY COVERAGE?

You have an auto policy with minimum state required limits 15/30/5

While driving your friend to school you swerve to avoid a pothole. You hit the car in the next lane causing it to swerve off the road and hit a fence. There is a mother and small child in the vehicle.

Hint: 15/30/5 is 15,000 per person for bodily injury, 30,000 per accident for bodily injury, and $5000 for property damage.

Injuries to your best friend $3,000

Injuries to the small child $10,000

Injuries to the mother $25,000

Damage to the other vehicle $15,000

Damage to the fence $2000

What would your auto insurance policy pay?

YOU DO THE MATH

Medical Payments Cover medical expenses to you and your passengers.

Also you are covered if you are passenger in another vehicle or if you are hit by a vehicle when you are a pedestrian.

Cover pays and doesn’t care who is at fault for the accident.

It even covers if you get hurt getting in or out of the vehicle.

MEDICAL PAYMENTS

Uninsured Motorist Pays your damages if hit by

someone who doesn’t have insurance.

Also pays if you are hit by a hit-and-run driver.

It even covers you if you are struck as a pedestrian and the vehicle does not have insurance.

Most important condition for coverage to apply is that the other person must be at fault!

Limits are usually same as liability limits. Important to have both higher liability limits and higher uninsured motorist limits.

UNINSURED MOTORIST

Think of different scenarios that could happen to your vehicle and the consequences afterwards. Discuss as a group- are they covered or not??

Example: Your car gets hit by a deer. The car is totaled. You need to tow the old vehicle, get a rental vehicle and buy a new one.

AM I COVERED OR NOT?

Collision covers damage caused by impact with another vehicle, object or overturn of your vehicle

Other than Collision provides protection from theft, fire, windstorm, hail, flood, falling objects, collision with animal, broken windshield.

Does not cover: Flat tire or blowout Mechanical breakdown Maintenance for your car

COVERAGE FOR YOUR AUTO

YES but… If you have purchased physical damage coverage- collision

coverage- then you also have “loss of use” coverage to help pay for a rental car after a covered accident but it may not cover all of your expenses- call your insurance agent to verify coverage.

DOES MY INSURANCE COVER A RENTAL CAR AFTER A CAR ACCIDENT?

What would you do?

Here are steps you should take:Call the policeProtect the car from further damageAgree to medical examsFile the claim with your insurance companyAllow insurance company to inspect & appraise your vehicle

Cooperate throughout the whole processKeep all legal papers, they must be sent to the insurance company

WHAT TO DO AFTER AN ACCIDENT

TEST YOUR INSURANCE IQARE YOU SMARTER THAN THE

MAN ON THE STREET?

QUESTIONS?