1. Motor Vehicle Insurance Section 16.2

2. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle What You’ll Learn How to explain the purpose of financial responsibility law (p. 351) How to describe the types of automobile insurance (p. 351)

3. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Why It’s Important Knowing about the different types of automobile insurance coverage will help you buy the best policy for your needs.

4. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Legal Terms financial responsibility law (p. 351) bodily injury liability insurance (p. 352) medical payments insurance (p. 352) uninsured motorist insurance (p. 352)

5. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Legal Terms underinsured motorist insurance (p. 352) property damage liability insurance (p. 353) collision insurance (p. 353) comprehensive insurance (p. 354) no-fault insurance (p. 355)

6. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Financial Responsibility Types of Motor Vehicle Insurance Bodily Injury Coverage Property Damage Coverage No-Fault Insurance Section Outline

7. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Pre-Learning Question What is a financial responsibility law?

8. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Every state has a financial responsibility law, which requires vehicle owners to prove they can pay for damages or injury caused by an automobile accident. Financial Responsibility

9. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle You may show proof of financial responsibility by Financial Responsibility depositing money depositing bonds or other securities carrying insurance

10. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle As of 2000, more than 40 states had laws requiring people to carry automobile insurance. Financial Responsibility

11. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Pre-Learning Question What are the different types of motor vehicle insurance?

12. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle 16.2 Types of Motor Vehicle Insurance

13. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle The main types of bodily injury coverage are Bodily Injury Coverage bodily injury liability insurance medical payments insurance uninsured motorist insurance underinsured motorist insurance

14. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Bodily injury liability insurance protects the insured against claims or lawsuits for injuries or death caused by negligence. Bodily Injury Coverage

15. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Medical payments insurance pays for medical, and sometimes funeral, expenses resulting from bodily injuries to anyone occupying the policyholder’s car in an accident. Bodily Injury Coverage

16. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Uninsured motorist insurance provides protection when the insured is injured in an automobile accident that is caused by a driver who has no insurance. It also protects parties who are injured by a hit-and-run driver. Bodily Injury Coverage

17. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Underinsured motorist insurance protects you when another driver has insurance, but not enough to pay for any injuries. Bodily Injury Coverage

18. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle The main types of property damage coverage are Property Damage Coverage property damage liability insurance collision insurance comprehensive insurance

19. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Property damage liability insurance applies when you damage the property of others, including such things as another car, a house, a telephone pole, or a tree. Property Damage Coverage

20. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Collision insurance covers damage to your vehicle when it is in an accident and pays for vehicle repairs, regardless of who was at fault. Property Damage Coverage

21. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Comprehensive insurance applies to damage to your vehicle from sources other than collision, including fire, theft, lightning, flood, hail, windstorm, riot, and vandalism. Property Damage Coverage

22. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Under no-fault insurance, regardless of who caused the accident, all drivers involved collect money from their own insurance companies. No-Fault Insurance

23. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Because no-fault systems vary by state, you should investigate the coverage provided by no-fault insurance in your state. No-Fault Insurance

24. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Match the type of automobile insurance with its description. InsuranceDescription 1. Bodily injuryA. Pays for medical expenses resulting from bodily injuries to anyone occupying the policyholder’s car in an accident. 2. Medical Payment B. Covers damage to your vehicle when it’s in an accident and pays for vehicle repairs.

25. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle continued 3. CollisionC. Applies to damage to your vehicle from sources such as fire, theft, and hail. 4. ComprehensiveD. Insurance that protects the insured against claims for injuries caused by negligence.

26. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle ANSWER 1. D 2. A 3. B 4. C

27. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Reviewing What You Learned 1. 1.Describe bodily injury liability insurance. What does it cover? Section 16.2 Assessment

28. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Reviewing What You Learned It protects the insured against claims or lawsuits for injuries or death caused by negligence. Section 16.2 Assessment Answer

29. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Reviewing What You Learned 2. 2.What type of insurance protects parties who are injured by hit-and- run drivers? Section 16.2 Assessment

30. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Reviewing What You Learned Uninsured motorist insurance Section 16.2 Assessment Answer

31. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Section 16.2 Assessment Critical Thinking Activity Fair Rates Teenage boys pay a much higher rate for automobile insurance than teenage girls do. Is this fair? Explain why or why not?

32. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Section 16.2 Assessment Critical Thinking Activity Fair Rates Then take an informal survey of the students in your class who have had tickets or accidents. Are the boys or girls better drivers?

33. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Section 16.2 Assessment Critical Thinking Activity Answer Fair Rates Answers will vary but should indicate the number of people actually surveyed.

34. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Section 16.2 Assessment Legal Skills in Action Motorcycle Helmet Laws Florida recently passed a law allowing people to ride motorcycles without wearing helmets. However, Florida law requires unprotected riders to carry medical insurance in case of injury.

35. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Section 16.2 Assessment Legal Skills in Action Motorcycle Helmet Laws With a partner, debate whether people should be allowed to ride motorcycles without helmets. Does the requirement for insurance make a difference?

36. Understanding Business and Personal Law Motor Vehicle Insurance Section 16.2 Owning a Vehicle Section 16.2 Assessment Legal Skills in Action Answer Motorcycle Helmet Laws Debates will vary but should recognize that motorcyclists need to be both personally and financially responsible for their choices.

37. Motor Vehicle Insurance End of Section 16.2