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Insurance Why do we need it?.

Published byTheodore Powell Modified over 8 years ago

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Presentation on theme: "Insurance Why do we need it?."— Presentation transcript:

1 Insurance Why do we need it?

2 Types of Insurance Health Home/Renters Life Automobile

3 Purpose of Insurance The main purpose of any type of insurance is to protect the holder against major financial loss.

4 How does it work? A contract is signed and both parties agree to uphold their end of the deal. What does each party have to agree to do in-order to uphold the contract? Insurance Company Policy Holder

5 Insurance Companies are Risk Takers
What type of risk is the insurance company taking? Why would a company agree to take such a risk?

6 $ MONEY!!!!

7 Underwriting The process of examining, accepting, or rejecting customers, and classifying the ones that are accepted

8 Underwriting and Auto Insurance
Who are you? Age Sex Marital Status Coverage Limits Driving Record Household Driver Info

9 Underwriting and Auto Insurance cont.
Type of Vehicle How do you use it? Credit Where you live at?

10 Can I lower my rates? Shop around Keep a good driving record
Take the highest deductible Drop unnecessary coverage's Discounts

11 Losing Insurance Why would an insurance company dump you?
Failure to pay premium To high of a risk

12 High Risk If you become to high off a risk how do you obtain insurance? Illinois Automobile Insurance Plan Safe Auto

13 Illinois Auto Insurance Plan
(ILAIP) was created to provide automobile insurance coverage to those eligible risks who are unable to obtain coverage in the voluntary market. This Plan became effective on October 1, 1940.

14 Safe Auto

15 Once you obtain insurance
Documents you are provided Insurance card Declaration sheet Policy (contract) Exclusions

16 Check on Learning!!! What is the main purpose of insurance?
What is underwriting? What is a premium? How can your credit score affect your insurance premium? What are the two main reasons an insurance company would dump you?

17 Check on Learning!!! What three items does the insurance company provide you with? What is an exclusion?

18 Minimum Coverage for Minimum Budget
“Keep in mind that the required minimum liability coverage is only the foundation of any auto insurance policy. If you cause a serious accident, minimum coverage may not be adequate.”

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