1. Auto Insurance

2. POP QUIZ!!!! GET OUT PENCIL AND PAPER!

3. What Is Auto Insurance? Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage

5. Basic Auto Coverage Bodily Injury Liability This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.

7. Basic Auto Coverage Medical Payments or Personal Injury Protection (PIP) This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.

8. Safe Happens!

9. Basic Auto Coverage Property Damage Liability This coverage pays for damage you may cause to someone else's property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.

11. Basic Auto Coverage Collision This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium.

12. Physical Damage Insurance continued 2. Collision Coverage – covers a collision with another object, car, or from a rollover Paid regardless of fault Generally covered when driving someone else’s car with their permission

14. Basic Auto Coverage Comprehensive This coverage reimburses you for loss due to theft or damage caused by something other than a collision, such as fire, falling objects, windstorm, hail, flood, vandalism, or deer. States do not require that you purchase collision, but if you have a car loan, your lender may insist you carry it until your loan is paid off.

15. Physical Damage Insurance 1. Comprehensive Coverage – includes all physical damage losses except collision and other specified losses. Usually includes deductible. Losses covered include: Theft, vandalism Fire, ice, windstorm, or hail Glass breakage Contact with animal

17. Basic Auto Coverage Uninsured and Underinsured Motorist Coverage This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.

18. Liability Insurance continued Policy limits for liability are usually quoted with three figures such as 25/50/10 Each figure represents a multiple of $1,000 25 = $25,000 Per-person bodily injury limit $25,000 is the most which will be paid for any one person’s bodily injury liability losses from an accident

19. Liability Insurance continued 50 = $50,000 Per-accident bodily injury limit $50,000 is the most which will be paid for all bodily injury losses from an accident 10 = $10,000 Per-accident property damage liability limit $10,000 is the most which will be paid in property damage liability from an accident

20. Insurance Rate Influences Insurance rates are determined for individual cases – these factors influence the rates: Age People under age 25 pay higher premiums Gender Men have more accidents, rates may be higher Marital status Married drivers have fewer accidents, so rates are lower

21. Influences continued Driving record Safe drivers have lower rates Number and type of tickets will raise rates Number and severity of accidents will raise rates Type and age of vehicle Newer, more expensive, and higher repair cost vehicles have higher rates Frequently stolen vehicles have higher rates Color of vehicle does not matter

22. Influences continued Vehicle use Rates are usually higher when driving more than 7,500 miles a year The more one drives, the greater the chance of an accident Place of Residence Rates vary among states People in large cities usually pay more than in rural or suburban areas Weather conditions may affect rates

23. Influences continued Number of drivers on the policy Additional drivers raise the premium Costs a driver under the age of 25 less to be added to his/her parents’ policy than to purchase a separate policy Driver training May receive a discount for having taken a driver’s education course

24. Influences continued Good student discount May receive a discount for good grades in school Multiple car discount May receive a discount for having two or more vehicles on the same policy Anti-theft systems May receive a discount for anti-theft devices such as car alarms

25. Influences continued Multiple policies with the same company Having both auto and home insurance Long-time customers Some companies might offer discounts to long-time customers

26. Review What are the 5 basic components of auto coverage? What does COLLISION cover? What does COMPREHENSIVE cover? What does PERSONAL INJURY cover? What does PROPERTY LIABILITY cover? What does UNDER/UNINSURED cover?

27. Life insurance A contract between an insurer and policyholder specifying a sum to be paid to a beneficiary upon the insured’s death Beneficiary - is the recipient of any policy proceeds if the insured person dies Dependent - a person who relies on someone financially

28. Types of life Insurance Term and Whole Term - covers policyholders for a fixed span of time. Can last up to 30 years. Whole - combines term insurance with an investment component Should have 2 - 3 times your annual salary. Can talk to a financial advisor for exact amount.

29. Renters insurance Covers personal property - not the physical residence Liability protection against accidental occurrences Inexpensive

30. Disability Insurance Short Term Disability - waiting period of 0-14 days up to 2 years Long Term Disability - Waiting period of weeks to months up to few years or rest of life Noncancelable - cannot be canceled by the insurance company except for nonpayment Guaranteed renewable - right to renew with the same benefits, however, the insurer has the right to increase your premiums.