 Insurance Consumer Ed Unit

Risk Areas  Property-items owned  Personal-bodily injury  Liability-anyone getting hurt by you

Auto Insurance Coverage  Collision Coverage-pays for the repair or replacement of your own vehicle after a traffic accident  30% of your bill

Auto Insurance Coverage  Comprehensive –protects your own vehicle against risks unrelated to traffic accidents, such as fire, hail, theft, and or vandalism.  12% of your bill

Auto Insurance Coverage  Liability Coverage-steps in when a covered drive causes injury or dame to other people or their property.  40-50% of your bill  Types-  Bodily Injury-covers expenses related to injuries suffered by others  Property Damage-covers damage to items not vehicles  Medical Payments-coverage of medical costs

Auto Insurance Coverage  Uninsured motorist-reimburses you bodily injury in accidents caused by uninsured drivers  Towing and Labor-the towing of vehicle if disabled or in an accident  Rental Reimbursement-gets you a car to use while yours is being fixed due to an accident

Insurance Rates for Factors  Age-under 25 more expensive  Gender-males pay more  Marital Status-married are better  Driving Record-safe, no tickets  Type and age of Vehicle  Vehicle Usage  Place of Residence

Vehicle Insurance Rate Discounts  Good Grades  Multi-policies with same company  Good Driver  Anti-theft measures  Defensive Driver Courses  College Graduates

Scene of an Accident  Call Police/911  Pull over and out of traffic  Exchange names, phone numbers, and insurance company information  Do not issue blame  Stick to the facts when asked by police

Special Type of Insurance  No-fault-does not assign blame for an accident  Each person pays for their own repairs.

Home Insurance  Covers the home and its contents in case of a natural or man made disaster.  All items owned by family members except vehicles whether at home or away.  80% rule-insure the value of the home and contents up to 80% of the cost of the replacements

Exclusions  Flood  Building Ordinance  Earthquake  Power Failure  Hurricane  Neglect  Volcano  War

Factors of Home Insurance Rates  Age of the Home  Local Firefighting capabilities  Construction materials  Size of the home

Home Insurance Rate Discounts  Increase deductible  Upgrade wiring or plumbing  Security System  Multiple Policies with same company

Home Insurance Specialties  Household inventory-detail list of items that are owned (video tape contents)  Renter’s Insurance-covers the contents of your space not the place itself.  Umbrella Policy-can be added to a the policy to protect the homeowners’ liability  Replacement vs. Cash Value  Replaces-gives you a brand new item  Cash Value-gives you what the items is currently worth

Life Insurance  Reason for is to protect the ones who are left in case of a death  Rule should be insured for 5 x’s your salary  Beneficiary is the person who gets the $$ from the life insurance policy.

Types of Life Insurance  Term-a policy that only covers the event of death  Prime Candidate-young families  Pro-cheap, covers for a specific time period, it is renewable, can convert to whole life  Con-not an investment  Whole-a policy that covers death and is an investment  Prime Candidate-financial well off  Pros-can be cashed in, investment  Cons-expensive

Factors to Life Insurance Rates  Age  Gender  Health  Smoker/Non-smoker  Occupation  Family History

Health Insurance Basic Coverage  Hospitalization  Surgery  Outpatient  Major Medical Additional Coverage-prescriptions, vision, and dental

Types of Insurance Plans  PPO-Preferred Provider Organization-is a plan that as long as you go to Dr’s on the list it is covered  HMO-Health Maintenance Organization-is a plan that selects the Dr’s and controls who you visit  POS-Point of Service –is a plan that requires a primary Dr, but can be referred else where and is covered if necessary

Government Sponsored  Medicare-medical insurance for retired workers  Medicaid-cannot afford any insurance coverage  Worker’s Compensation-if hurt on the job it will be covered by this-employer pays for

COBRA  Consolidated Omnibus Budget Reconciliation Act  Covers workers for one job til the next up to 18 mos.  Former employee must pay for the coverage