2. Partial lesson 13 of 36 slides

3. Insurance Policy

4. 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

5. 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 different types of auto insurance? What are the different types of auto insurance? …let’s consider them one at a time

6. Liability insurance covers the damage you cause to other vehicles, people, or property Oops, my fault There are two types What is Liability?

7. What is Property Damage Liability? 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 expensive traffic light – the cost could be very high…required in most states. Oops, my fault

8. 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 death you have caused to others involved in the collision.

9. 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?

10. 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?

11. 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?

12. 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?

13. It pays for injuries to you 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?

14. Required in many states. Needed by all car owners. It pays for injuries to you 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!”