Unit: Insurance and “accident” procedures The primary learning outcomes desirable from this lesson are as follows: 1) Become knowledgeable concerning the various types of vehicle insurance and their functions 2) Learn how a variety of factors contribute to higher or lower insurance rates 3) Understand the correct procedures if involved in a collision 4) Realize that there are “post-collision” considerations even days after the incident

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

Liability insurance covers the damage you cause to other vehicles, people, or property Oops, my fault There 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. 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

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.

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 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?

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!”

Good to have…but not a necessity if you belong to an auto club. Towing Insurance pays the cost of towing and some minor repairs to the disabled car. Included are: dead battery, out of gas, flat tire and “accidents” What does Towing Insurance cover?

Premium: What do these terms mean? What you pay for your insurance coverage Most policies are for a 6 month period Deductible: The amount you agree to pay toward the repair or replacement of the vehicle. Your insurance company agrees to cover the balance up to the specified limits of the policy. Auto Insurance Selecting a higher deductible will require a greater out of pocket expense, but it will also____________________ lower the premium

How are rates determined? Collision and Violation record Age of principal driver Gender of driver Martial status Where the driver lives Type of vehicle and miles driven

WHAT ARE SOME WAYS YOU CAN SAVE MONEY ON INSURANCE? Four Wheel Anti-lock brake system and passive restraints (Airbags or Automatic motorized seat belts) Anti-theft devices Good Driver Multi-Car Economy Car 55 and Retired Good Student

Failure to stop is a serious violation. Do not leave your vehicle where it will block traffic. leave your vehicle where it will block traffic. (if it can be moved) Be sure to turn off the ignition. Failure to stop is a serious violation. Do not leave your vehicle where it will block traffic. leave your vehicle where it will block traffic. (if it can be moved) Be sure to turn off the ignition. Stop immediately…if you can move to the side of the road

Never move an injured person unless there is danger of fire or another collision Never move an injured person unless there is danger of fire or another collision Aid the injured…administer basic first aid for injuries only if qualified Stop immediately…if you can move to the side of the road

Do not put yourself or others in danger while directing traffic while directing traffic Do not put yourself or others in danger while directing traffic while directing traffic Aid the injured…administer basic first aid for injuries only if qualified Protect the scene with flares or reflectors or direct traffic

Stop immediately…if you can move to the side of the road Do not let them talk you out of it by saying: “We can handle the matter ourselves.” Do not let them talk you out of it by saying: “We can handle the matter ourselves.” Aid the injured…administer basic first aid for injuries only if qualified Protect the scene with flares or reflectors or direct traffic Send for police – give the facts

Stop immediately…if you can move to the side of the road Names, addresses, driver’s licenses numbers, plate numbers, and insurancecompanies Names, addresses, driver’s licenses numbers, plate numbers, and insurancecompanies Aid the injured…administer basic first aid for injuries only if qualified Protect the scene with flares or reflectors or direct traffic Send for police – give the facts Exchange information – but do not admit it was your fault Additional Steps Record witnesses names and addresses File necessary reports See their insurance card

When filing the report When filing the report Note the time of day, weather conditions, road conditions, street lights, signs, and the presence and length of skid marks. Make a diagram illustrating the location of the vehicles, crosswalks, stop signs, and traffic signals. If you have a camera, take pictures.

OtherImportantconsiderationsOtherImportantconsiderations Continue your medical care after the accident. Even serious injuries may remain undetected even after the initial visit to the doctor or emergency room. Medical expenses may be covered by your insurance plan.

OtherImportantconsiderationsOtherImportantconsiderations Contacting a lawyer. Your insurance company must be contacted in the proper fashion to insure that all benefits are obtained concerning your personal injuries. Failure to properly notify and inform the company may result in an objection to such a claim at a later time. Also, forms must be filled out for the Department of Public Safety, the local Police Department, or the Registry of Motor Vehicles. A lawyer’s assistance may be invaluable in these situations.

Quiz time…how much do you remember?

1) Liability insurance covers the damage you cause to other vehicles, people or property. TRUE or FALSE:_________ 2) If you were to crash with an expensive vehicle and it was your fault, your ______________________would pay. 4) Medical payments insurance covers injury expenses for occupants in an insured vehicle regardless of who was at fault. TRUE or FALSE:_______ 5) Collision insurance pays the cost of repairing the owner’s car when the other driver is at fault in the collision? TRUE or FALSE: _______ 3) If it was your fault in a crash and there were injuries in the other car your _____________________would pay.

10) The amount you usually pay to an insurance company every six months is called a: _______________ 11) The amount you agree to pay ahead of time toward the repair of the vehicle: ______________ 6) What part of your insurance pays for a tree falling on your car during a storm? _____________________ 7) After about 7 years of car ownership, most people will ______________the comprehensive insurance on the car. 9) It pays for injuries in the event of a hit and run collision or if those who hit you have no insurance:______________ 8) In some states with this type of insurance, the driver’s insurance policy only covers their own damages: ________

17) In a collision, you should aid the injured only if you are: ___________________________________ 16) The first thing you should do if involved in an accident is to: ________________________________________ 13) TRUE or FALSE: Your premium rate is mostly based on your driving record, age, and type of vehicle. _______ 15) Owning an economy car with an anti-lock braking system is one way of reducing your premium. ______ 12) Selecting a higher deductible will usually result in a higher premium. TRUE or FALSE: ________ 14) Married people, country dwellers and females will generally pay less than males, city people and singles?____

23) If you feel the slightest discomfort after the collision, its important that you seek: ________________________ 22) Insist on seeing their proof of insurance that they are required to carry in their vehicle. TRUE or FALSE: ______ 18) How can you “protect the collision scene” from further damage? ______________________________________ 20) When you know its your fault, go ahead and admit it as you exchange information. TRUE or FALSE: ______ 19) TRUE or FALSE: It’s always a good idea to call the police at the scene of an collision. ______ 21) If the police are at the scene, they will take care of filing all the paper work involved. TRUE or FALSE: ______