1. Auto Insurance 101 Gene Brooks

2. Hypothetical Facts Sam Adams is driving down Abercorn St. Another driver runs stop sign on cross street The two vehicles wreck

4. What to do? Sam Adams is taken to hospital Car is towed away Other driver says, “Don’t worry, I’m fully covered.”

5. Insurance Coverages

6. Liability Liability Collision (optional) Collision (optional) Comprehensive(optional) Comprehensive(optional) Medical Payments Coverage (optional) Medical Payments Coverage (optional) Uninsured/Underinsured Motorists (optional) Uninsured/Underinsured Motorists (optional)

7. Typical coverages

9. Liability Only legally required coverage in Georgia Only legally required coverage in Georgia $25,000 minimum coverage-required $25,000 minimum coverage-required – Provides legal representation – Bodily injury – Property damage Adam needs to find out about other driver’s coverage Adam needs to find out about other driver’s coverage

11. Collision Coverage Optional Optional Covers Sam’s car if damaged due to his fault Covers Sam’s car if damaged due to his fault Deductible $500 Deductible $500 Ins. Co. option to repair or replace Ins. Co. option to repair or replace Some policies provide temporary rental Some policies provide temporary rental Would also apply if no driver “at fault” Would also apply if no driver “at fault”

13. Comprehensive Coverage Applies to damage not covered by Collision coverage (ie. vandalism, tree limb, etc.) Deductible $100 Does not apply here because a collision occurred and caused damage

14. Medical Payments Coverage Optional- none in this policy Optional- none in this policy Only for medical bills incurred in wreck Only for medical bills incurred in wreck Many policies have $5,000 payment Many policies have $5,000 payment If Sam had this coverage, it would cover his treatment in hospital If Sam had this coverage, it would cover his treatment in hospital

16. Uninsured / Underinsured Coverage

18. Underinsured / Underinsured Applies when UNINSURED = at-fault party has no insurance UNINSURED = at-fault party has no insurance UNDERINSURED = at-fault party has insurance but Sam’s claim exceeds that insurance UNDERINSURED = at-fault party has insurance but Sam’s claim exceeds that insurance

19. When UM Applies Sam’s insurance company steps into shoes of ‘at-fault’ driver

20. Stacking / Non-Stacking If selected at time of purchase, UM coverages from multiple vehicles can stack to provide more coverage If selected at time of purchase, UM coverages from multiple vehicles can stack to provide more coverage Amount of UM available depends on number of autos insured under Sam’s policy and insurance on vehicle Sam was driving Amount of UM available depends on number of autos insured under Sam’s policy and insurance on vehicle Sam was driving

21. What Happens IF Sam’s medical bills are $20,000 and his lost income is $10,000 Other driver’s insurance is only $25,000 Sam places his ins. company on notice Sam’s ins. company denies the claim Sam files lawsuit against ‘at-fault’ driver

22. Then The at-fault drivers insurance company is responsible for at-fault driver up to limits of at- fault driver’s coverage ($25,000) and then Sam’s insurance company is responsible for whatever Sam’s limits of UM coverage are ($300,000)

23. Brooks Law Contact / Info Sheet Web – www.brooks-law.com Email – gbrooks@brooks-law.com