partial lesson 13 of 36 slides insurance policy
TRANSCRIPT
Partial lesson
13 of 36 slides
Insurance Policy
A system of protection against loss in which a number of individuals agree to pay certain sums for a guarantee
that they will be compensated for a specific loss.Every state has financial responsibility laws…requiring
that you can pay for damages that you cause.
A system of protection against loss in which a number of individuals agree to pay certain sums for a guarantee
that they will be compensated for a specific loss.Every state has financial responsibility laws…requiring
that you can pay for damages that you cause.
What is a definition of insurance?
What is a definition of insurance?
Policy
Property Damage Liability
Bodily Injury Liability
Medical Payments Insurance
Collision Coverage
Comprehensive Coverage
No-Fault Coverage
Uninsured Motorist Coverage
Underinsured Motorist Protection
What are the differenttypes of auto insurance?What are the different
types of auto insurance?
…let’s consider them one at a time …let’s consider them one at a time
Liability insurance
covers the damage
you cause to other
vehicles, people, or
property
Liability insurance
covers the damage
you cause to other
vehicles, people, or
property
Oops, my
fault
There are two typesThere are two types
What is Liability?
What is Property Damage Liability?
Property Damage Liability insurance covers the damage you cause to
other vehicles or property.
Property Damage Liability insurance covers the damage you cause to
other vehicles or property.
Recommended coverage:$100,000 Property damage
each occurrence
Recommended coverage:$100,000 Property damage
each occurrence
If you were to hit a very expensive vehicle(s) or take out an expensivetraffic light – the cost could be very high…required in most states.
Oops, my fault
What is Bodily Injury Liability?
Recommended coverage:$100,000 each person
$300,000 each occurrence
Recommended coverage:$100,000 each person
$300,000 each occurrence
Required in most states.State minimums are usually inadequate
Oops, my fault
Bodily Injury Liability pays claims for injuries or deathyou have caused to others involved in the collision.
Pays immediate medical cost even if there is additional medical insurance.
Medical Payments Insurance covers bodily
injuries and funeral expenses for occupants in an insured vehicle up to
stated amounts, regardless of who was at fault.
What is Medical Payments Insurance?
Important coverage for new and expensive cars…usually dropped after about 7 years of ownership
when the vehicle’s value has decreased.
Collision Insurance pays the cost of repairing or replacing
the owners car when the owner is at fault or when when the owner cannot collect from the person
who is at fault.
What is Collision Insurance?
Important coverage for new and expensive cars…usually dropped after about 7 years of ownership
when the vehicle’s value has decreased.
Comprehensive Insurance pays the cost of repairing or replacing the owners car if damage results from: fire, theft, storms, flood,
wind, vandalism, earthquake and riots.
What is Comprehensive Insurance?
Some states have this to prevent over burdening the courts with litigation.
No Fault Insurance:People involved in collisions
recover their losses from their own insurance company
regardless of who is at fault…but with limitations as specified in the policy.
No fault insurance is handled differently from state to state
What is No Fault Insurance?
It pays for injuries toyou or your passengers
in the event of a hit and run collision or if those
who hit you have no insurance or are
underinsured.
What is it?
Required in many states. Needed by all car owners.
It pays for injuries toyou or your passengers
in the event of a hit and run collision or if those
who hit you have no insurance or are
underinsured.
Covers medical bills, legal and court fees,
loss of wages
“Hey, you get back here!”