what every teen should know about insurance
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Kansas Insurance Department. What every teen should know about insurance. Cindy Hermes Director of public outreach. June 25, 2014. What every teen should know. About KID Auto insurance Renters insurance Health insurance. About KID. Auto insurance. Renters insurance. Health - PowerPoint PPT PresentationTRANSCRIPT
What every teen What every teen should know about should know about
insuranceinsurance
Kansas Insurance DepartmentKansas Insurance Department
June 25, 2014June 25, 2014
Cindy HermesDirector of public
outreach
What every teen should knowWhat every teen should know• About KID
• Auto insurance
• Renters insurance
• Health insurance
About KIDAbout KID
Auto insurance
Rentersinsurance
Healthinsurance
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About KIDAbout KID• We regulate for rate adequacy, not cost• We also regulate:
• More than 1,500 nonresident insurance companies selling policies in Kansas• 50 companies headquartered in Kansas• More than 109,000 insurance agents
• 22,000 resident / 86,000 nonresident agents
• Handle nearly 15,000 phone calls each year, including approx. 6,000 complaints
• Handle more than 850 fraud cases each year• Recovered more than $109 million for consumers since 2003
About KIDAbout KID
Auto insurance
Rentersinsurance
Healthinsurance
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Auto insuranceAuto insuranceBasic insurance policy includes four types of coverage (see KID’s “Auto insurance & shopper’s guide” booklet for details on minimum amounts required by law):
• Bodily injury liability
• Property damage liability
• Personal injury protection (PIP)/Kansas no-fault
• Uninsured/underinsured motorist protection
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Auto Auto insuranceinsurance
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Auto insuranceAuto insuranceOther coverage available:
• Comprehensive – coverage for fire, theft, windstorm, hail or other losses
• Collision – coverage for damage caused in a collision or rollover accident
Neither are required by Kansas law, but may be required by a lender or bank until the vehicle is paid off.
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Auto insuranceAuto insuranceHow premiums are determined:
* “Chargeable accidents” are accidents that the insurance company must pay a claim for.
Preferred Standard NonstandardDriver has no moving traffic violations and/or chargeable accidents in the last 3 to 5 years.
Pays the lowest premium rates
Moderate risk drivers with no more than one moving traffic violation and no chargeable accidents in the last 3 to 5 years.
High-risk drivers. May be young, have less driving experience, have had moving traffic violations and/or chargeable accidents.
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Auto insuranceAuto insuranceOptional coverage available:
• Rental reimbursement
• Excess medical payments coverage
• Umbrella liability policy
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Tips for teenage driversTips for teenage drivers• Consider the cost of insurance when buying your
first vehicle. Insurance rates vary with type and model of vehicle. SUVs and performance cars typically cost more.
• If you have a low net worth, don’t buy too much liability coverage.
• If you purchase a used car, consider dropping collision coverage as a way to cut expenses. The cost of collision coverage can exceed the value of an older car.
• A higher deductible will lower your premium.
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Tips for teenage driversTips for teenage drivers• Download the WreckCheck app to your smartphone.
The app was created by the NAIC and helps drivers know what to do if they are ever in an accident, and helps with filing insurance claims. Visit the app store of your phone or tablet to download.
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Tips for parents of teenage Tips for parents of teenage driversdrivers
• If the teenager doesn’t own a car (meaning the title isn’t in his or her name), you might be able to have the teen rated on the family’s personal auto insurance as an occasional operator.
• Check for discounts for• Having multiple vehicles insured with the same
company• Teen having good grades• Teen maintaining a good driving record
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Tips for parents of teenage Tips for parents of teenage driversdrivers
• Teenage drivers are commonly assigned to the most expensive car in the household. You can save money by making sure your teen’s name is assigned to the correct car.
• Look into gap insurance. Gap insurance is designed to provide coverage for the difference between the amount owed on the vehicle and the actual cash value of the insured vehicle should that vehicle be totaled in an accident.
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Renters insuranceRenters insuranceAs a renter, you have no coverage on your belongings if they are lost in a fire or burglary, or if you are held liable for property damage (e.g. – a broken window) or bodily injury.
Renters insurance covers:• Personal property• Liability to property damage & injury to others
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Renters insuranceRenters insuranceNot all property is covered by renters insurance.Common exclusions:
• Animals, birds or fish• Motor vehicles, including equipment &
accessories• Flood or rising water damage; Water damage
from sewer backup• Damage from war, terrorism or nuclear hazard• Neglect• Earthquakes or power failure
*Coverage for items such as jewelry, art & collectables is limited. You may need an additional endorsementto cover these items.
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Renters insuranceRenters insuranceThe personal liability portion of your renters insurance provides coverage against a claim or lawsuit resulting from bodily injury or property damage to others caused by an accident on your property.
The policy is usually limited to $100,000 per claim.
This also covers damage to the property of others if you borrow something from a friend or relative, or if you damage another person’s property in his or her home.
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Renters insuranceRenters insuranceActual cash value – The company will pay you for the value of your property minus depreciation and physical deterioration.
Replacement cost – The company will pay you for how much it will cost at today’s prices to replace damaged or destroyed property, even if that price is higher than the amount you paid for the original item.
***Most companies provide coverage based on actual cash value, unless you specifically ask for replacement coverage
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Renters insuranceRenters insuranceExample:•In 2005 you purchased a couch for $700.•The couch is destroyed in 2013 and is worth $300 because of age & wear and tear.•New couch costs $900.•An actual cash value policy entitles you to the current value of the couch - $300 – minus your deductible.•If you have replacement coverage, you will receive the $300, and the rest of the $600 when you show proof of purchase (minus your deductible)
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Renters insuranceRenters insuranceOptional coverages available:
• Coverage for food spoilage• Lock replacement• Loss of use of residence• Fire department service charge• Debris removal • Theft or illegal use of credit & debit cards• Additional coverage for jewelry, art, electronics
or collectibles that exceed the limits of the standard renters policy
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Health insuranceHealth insurancePremium - The monthly amount you pay to have a health insurance policy.
Deductible - The amount you must pay out-of-pocket when visiting the doctor or receiving medical care before your insurance company starts paying.
Coinsurance – The amount you must pay alongside the insurance company for coverage after you meet your deductible (e.g. – 80%/20%)
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Health insuranceHealth insuranceBeginning Jan. 1, 2014, everyone must have health insurance or pay a tax penalty. Options for teens:
• Stay on your parents’ health insurance plan until your 26th birthday
• Catastrophic coverage – a high deductible plan with low premiums that are available to individuals under 30 years old
• Student health plans – available through many colleges & universities
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Health insuranceHealth insuranceOpen enrollment for health insurance:
November 15, 2014 through February 15, 2015
Outside of this time period there are special enrollment periods – qualifying life events.
www.healthcare.gov
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Health insuranceHealth insuranceFinancial assistance will be available to those who have qualifying (low) incomes.
• From $11,670 for a family size of 1 at 100% of federal poverty level (FPL) to
• $95,400 for a family size of 4 at 400% of FPL
Health insurance companies must cover vision and dental care for children 18 years and younger.
Most health insurance plans specify the hospitals and doctors that accept your health insurance.
Make sure your doctor and hospital is included• Prescription drugs
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Additional resourcesAdditional resourcesTo get more detail on these types of insurance, and many others, visit:
www.ksinsurance.org
The Kansas Insurance Department publishes more than 30 booklets, brochures and fact sheets on insurance topics. Visit our website to download them for free, or call our toll-free number to order them by mail:
1-800-432-2484
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Additional resources from KIDAdditional resources from KID
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420 SW 9th St.Topeka, KS 66612
Phone:785-296-3071
Consumer Assistance:800-432-2484
Fax:785-296-7805
Kansas Insurance DepartmentKansas Insurance Department