Auto Insurance

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3 Importance of Auto Insurance: Incase your are involved in a car accident or vandalism It is the law in many states Just because you are a good driver doesn’t mean that accidents can’t happen. Can you afford to replace or repair your car if it’s damaged? Can you guarantee that everyone on the road is a great driver and they won’t hit your car?

4 Two Types of Auto Insurance: Liability insurance: Automobile insurance is a state law in the majority of states. The type of insurance they require drivers to carry is liability insurance. Liability insurance insures the driver for the cost of any damage or injury that is caused to someone else during an accident. Comprehensive insurance: Also known as Full-coverage insurance. This insurance covers basic liability insurance and pays to repair of replace the policyholder’s vehicle, damage to personal property, other vehicles and bodily injury. It also covers any type of damage caused such as; fire, theft, flood, vandalism or collision.

5 Difference Between liability & comprehensive Auto Insurance: The coverage limits in the policies. Many automobile insurance companies cover:  Bodily injury  Property damage  Uninsured motorist  Underinsured motorist  Within these types of coverage there are individual coverage limits described in the policy.

6 Liability & Comprehensive Auto Insurance: Three numbers, 50/100/25, describe liability insurance. This refers to the amount of coverage, usually covered in the policy.  For example, 50/100/25 coverage includes $50,000 of bodily injury to a single individual, $100,000 of bodily injury caused to everyone in an accident, and $25,000 of property damage. Comprehensive insurance tends to have higher coverage limits and includes:  Uninsured motorists  Underinsured motorists  Some policies cover for rental car service while your vehicle is being repaired.

7 Auto Insurance: Cont…. It is vital to purchase and maintain car insurance. Without it, there is a huge amount of risk to yourself, others, and your future finances. If you get in an accident without car insurance and you cause $80,000 in damages and medical costs, the courts will likely determine that you are responsible to pay the money. The court can garnish wages (automatically take your pay) to repay the money owed, thus severely stifling income for many years to come.

8 Shopping for Auto Insurance: Shopping for insurance can take some time, but with the Internet you can obtain quotes fast.  Read the policies and special provisions carefully to make sure you are evaluating comparable insurances. Bottom line: Younger people pay higher insurance costs than older Americans. It’s a fact: teenage drivers cause a lot of accidents. In fact, the number one killer of teens does not have a trigger or a plunger – it has a steering wheel.

9 Auto Insurance: Ways to lower the cost. Good driver discounts: Insurance premiums will increase if you get speeding tickets. Get too many tickets, you may not be able to find insurance at all. Good grades: As a teen driver, good grades may lower insurance rates with many companies. Good car: Young adults that purchase sports cars or 4-wheel drive vehicles pay more. Insurance companies figure the insured driver will be driving fast or off-road, and they don’t want that. This explains why Mom and Dad do not want you to drive that the new BMW, but prefer you take the Honda.

10 Importance of Renter’s Insurance To protect your belongings incase of theft, leakage or natural disaster like earthquakes. Take an inventory of what you have and what it would cost to replace it. If you just have an old couch and some clothes, you probably don’t want to add the expense of this insurance. On the other hand, if you have designer clothes, computers, furniture and other items that would cost you a lot to replace, take a look into renters insurance.

11 Coverage Limits on Renter’s Insurance These coverage limits pertains to personal property. Examples of coverage limits are:  Electronics  Personal Clothing  Furniture  Appliances Deductibles and premiums work the same with this type of policy.

12 Steps to ensure you have enough Insurance Coverage: Contact the companies you currently have your insurance with and 2 other companies and make comparisons. Ask a lot of questions and take good notes. Consult with a trusted, knowledgeable, friend that may help you sort through the information you received. Make a decision to keep your policies the same or make changes so you are better protected. A knowledgeable agent can help you pick the best insurance to protect you and save you money.

13 Insurance information …. All insurance policies are made up of an actual policy and a premium. This defines that coverage in the policy and the amount you will pay for the coverage.

14 Commonly used Insurance definitions: Insurance policy: An insurance contract that describes the type and amount of coverage, as well as the premiums and deductibles included in the policy Insurance premium : The payment made to an insurance company in exchange for an insurance policy guaranteeing protection or coverage on what you insure. Deductible: The amount of the loss you pay out of pocket to the insurance company on the damaged good.  For example: If you get in a car accident and have $4,000 in damage and a $500  deductible, the insurance company will pay everything but $500. The $500 is your responsibility..

15 Commonly used Insurance definitions: Cont…. Coverage limits: The maximum amount paid by an insurance company.  Example: Your insurance covers only $50,000 in damages and you have $60,000 in damages, they will only pay up to the coverage limit. Insurance policy: An insurance contract that describes the type and amount of coverage, as well as the premiums and deductibles included in the policy.

16 What are insurance claims What are insurance claims? What do you need to be aware of with insurance claims? How can insurance adjusters affect your claim?

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