Source of Lesson Resources: Next Gen Personal Finance Car Insurance Source of Lesson Resources: Next Gen Personal Finance

10 Reasons You Need Car Insurance 1. It’s the law. In virtually every state, you must carry car insurance or face criminal fines. Repeated offenses could lead to the loss of your driver’s license and even a jail sentence. Source: http://enlightenme.com/top-10-reasons-for-car-insurance/

10 Reasons You Need Car Insurance 2. Your car is an important asset. For many people, a car is the second-most-expensive purchase they will make in their lives, next to the purchase of a home. Vehicles are essential not just because they’re expensive, but also because of the service they provide to families. Car insurance is a way to protect that important asset. Source: http://enlightenme.com/top-10-reasons-for-car-insurance/

10 Reasons You Need Car Insurance 3. Your lender will always want to be paid. If you have an accident and can’t afford to get your vehicle repaired because you don’t have car insurance, the company that provided you a car loan won’t stop asking for monthly payments. Car insurance is one way to help ensure that you can continue to make your car loan payments. Source: http://enlightenme.com/top-10-reasons-for-car-insurance/

10 Reasons You Need Car Insurance 4. Cars get you to work. If you decide to forgo insurance and then get into an accident and sustain damage you can’t afford to repair, that doesn’t affect your need to get to and from work and make other necessary daily trips. Car insurance helps pay for car repairs so you continue to make your daily trips. Source: http://enlightenme.com/top-10-reasons-for-car-insurance/

10 Reasons You Need Car Insurance 5. The cost of a major accident. One of the many important roles of car insurance is the money for medical costs of people who are injured in accidents that are your fault. Of course, that includes any injuries you may suffer as well. Source: http://enlightenme.com/top-10-reasons-for-car-insurance/

10 Reasons You Need Car Insurance 6. Provide legal protection. There’s nothing to stop someone from suing you after an accident even if they are in the wrong. But car insurance gives you a buffer between legal claims and your wallet. That includes providing an attorney to handle any lawsuit stemming from a lawsuit over an automobile accident. Source: http://enlightenme.com/top-10-reasons-for-car-insurance/

10 Reasons You Need Car Insurance 7. Protection from Mother Nature. What will you do if there’s a mudslide,  hurricane, or earthquake that damages or even totals your vehicle? That can be a time when money is extremely tight, but car insurance provides some protection in those circumstances. Source: http://enlightenme.com/top-10-reasons-for-car-insurance/

10 Reasons You Need Car Insurance 8. Non-accident protection. Car insurance can also be crucial if your vehicle is stolen or vandalized. That’s one of the reasons why many insurance companies offer a break on insurance if a policyholder regularly parks his or her car off the street and in a covered garage, where the instances of theft and vandalism are much less prevalent. Source: http://enlightenme.com/top-10-reasons-for-car-insurance/

10 Reasons You Need Car Insurance 9. Stop a slide to bankruptcy. For many people, the uninsured loss of a vehicle completely turns their lives upside-down. There’s no money for another vehicle, so getting to work on time can be difficult. That can lead to loans or credit card use that could spiral out of control. Source: http://enlightenme.com/top-10-reasons-for-car-insurance/

10 Reasons You Need Car Insurance 10. Peace of mind. Because car insurance helps in so many areas, not having insurance can lead to some nerve-racking times just hoping against hope that no other bad news arrives. Studies actually show that contented workers are more productive on the job. That’s just one of the perks of peace of mind. Source: http://enlightenme.com/top-10-reasons-for-car-insurance/

Video Clip Running Time: 3:54 https://www.youtube.com/watch?v=-Zr63hTicTU

Source Allstate Insurance Deductibles Source Allstate Insurance

Source Allstate Insurance Coverage Limits Source Allstate Insurance

5 Factors That Affect What You Pay for Auto Insurance Running Time: 2:24 https://www.youtube.com/watch?v=5lG7RKbPbq8

Car Insurance Requirements for California Types of coverage required:  Bodily Injury (BI) and Physical Damage Liability (PD) Minimum Liability Limits: The first two numbers refer to bodily injury liability limits and the third number to property liability.  For example, 15/30/51 means coverage up to $15,000 per individual injured in an accident, $30,000 for all persons injured in an accident and $51,000 coverage for property damage. Source: http://www.cars.com/go/advice/Story.jsp?section=ins&subject=ins_req&story=state-insurance-requirements

Ways to Keep Car Insurance Rates Down Get Good Grades – Insurance companies often give students discounts for good grades Don’t Get Into Accidents – Insurance companies usually offer “good driver discounts” Choose the Right Vehicle – Sports cars often have higher rates. Do your research. Increase Your Deductible – The higher the deductible, the lower the premium Be on your parent’s policy – If the car is in their name, this could save you money. It will still be expensive, though!

What to Do After a Car Accident If you’re in an accident, stay safe, record evidence, exchange contact information, and don’t admit fault. Running Time: 1:48 https://www.youtube.com/watch?v=qGX0nMqmEaA

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