Presentation on theme: "Auto Claims The at fault driver of a vehicle that damages other property or injures other people is liable for the cost of repairs. North Carolina financial."— Presentation transcript:
1Objective 08.02 Interpret the nature, theory, and different types of insurance Automobile Insurance
2Auto ClaimsThe at fault driver of a vehicle that damages other property or injures other people is liable for the cost of repairs.North Carolina financial responsibility laws mandate that drivers carry bodily injury and property liability insurance coverage.
3Bodily Injury Liability Coverage Bodily Injury Liability protects the insured person from liability claims for injury to:People in other carsPassengers riding with the insured personDOES NOT cover the insured person (driver)
4Property Damage Liability Property Damage Liability protects the insured person from liability claims for damage to property of others, such as:Personal property including vehicles, animalsBusiness property including telephone poles and other utility structuresGovernment property such as bridges and other road structuresReal propertyDoes NOT cover the insured person’s property
5Optional Auto Coverage-Collision Protects the vehicle owner against damage from a collision with another object or the vehicle turning overCovers the cost of:Repair to insured’s vehicleCharges points to insurance if claim filedPoints make premiums increase.Does NOT cover injuries to people
6Optional Auto Coverage-Collision Although not required by financial responsibility law, collision isUsually required by a lienholder if loan on vehicle is not paid in fullA lienholder is a bank, individual or loan company who holds a secured interest in the property until the loan is paid in full.Example: If car catches fire and loan is still outstanding, the claim dollars are paid to insured and lienholder.
7Collision Claim Payments Insurance company may pay either theCost to repair insured vehicle less deductible, orActual cash value, market value or NADA Bluebook value of a total loss vehicle less deductibleThe insurance company does not consider the loan balance when settling a claim! The loan balance is an issue for the owner. Loan balance may be more than a vehicle’s value!
8Comprehensive Auto Insurance Protects the insured vehicle against damage from almost all damages except collisionFireTheftVandalismHailWindstormWindshield damagesCollision with wild animal including fowlsDoes NOT charge points when claim is filed
9Uninsured/Underinsured Motorist Coverage Protects policyholder against driversWithout insurance insurance to cover the loss sufferedWithout enough insurance to cover the loss sufferedExamples:Hit and run driversDrivers who let insurance policy lapseDrivers involved in serious accidents who carry low $ liability limits of coverage
10Other Auto CoverageMedical payments - Covers anyone in vehicle or hurt by vehicle, even if not movingEx: Broken finger by closing finger in door or trunk, pedestriansTowing Expense - Pays tow feesRental Reimbursement - Covers cost of rental when vehicle being repaired due to accident
11No Fault InsuranceThe insurer of each party involved in accident pays the insured loss regardless of faultNot required to prove fault of one party over the otherReduces time delays for claim settlement especially in bodily injury lawsuit casesReduces money spent to resolve the claimNC is NOT a no fault insurance state.
12Cost of Insurance Insurance companies legally discriminate by using: Relevant statistical data andRisk factors related to the insurance typeUnderwriters at companies “rate” to determine the premium cost for the coverage requested.Standard premiums may be rated up for hazardsPoints for tickets or accidents on auto insuranceHealth issues on life/health insurance
13Factors Affecting Cost of Auto Insurance Type of coverage$ Limit of coverageRisk retention -Deductible amountExperience rating – how long driver has been licensed (AGE IS NOT A FACTOR!!)At fault Accidents (Points)Tickets (Points)Type of Vehicle - Value, reparability, engine size, styleGeographic area- Urban, suburban, ruralUse of Vehicle - Distance driven and purposeCompany