Auto Insurance Introduction of the topic and yourself (name, where you work, job title)

Name That term What is: Where the insured’s address is found? What is: A policy provision that eliminates coverage? Exclusions: eliminates coverage that should be provided by other policies or is catastrophic or uninsurable. What is: The glossary of terms used in a policy? Definitions What is: Where the insured’s address is found? Declarations: front page of the policy where you find name, address, description of vehicles and other personal information. What is: A broad description of what the insurer will do? Insuring Agreement: broad statement of insurance company’s obligations along with responsibilities of the insured. “you pay premium we will pay claims” What is: A document that changes an insurance policy? Endorsements: Modifies the policy to accommodate insured’s special needs. What is: A requirement that must be met before the policy will pay? Conditions: coverage is provided only under certain conditions. Go over these definitions so students understand what you are talking about later on in the presentation. You can add examples to each word to illustrate them better to the students if needed.

Who can purchase an auto policy? Individuals Married couple Unrelated couple if both are named insured Car, van, station wagon, or SUV Pickup or truck under 10,000 pounds and not used in delivery

Liability coverage Provides protection when you are responsible to someone else for injury or damage due to car accident. Coverage is provided when: You or family member is driving your own car You are driving someone else’s vehicle Someone is driving your car with your permission You are driving rental vehicle You are driving any vehicle

Who Can Drive My Car? Who do you think can drive your car? The following people can drive your car: Anyone you give permission to A family member (someone related to by blood, marriage or adoption) Spouse You! Why should you be selective in who drives your car? What can be long term consequences for letting the wrong person drive your car? When you feel the discussion on who is allowed to drive your car has gone long enough you can click the mouse to show who really is allowed to drive your car. Discuss the responsibility of letting other people drive your car and the consequences that can follow. Use real life examples. Ask the students the bottom two questions to get them involved in the discussion as well.

Does My Insurance Cover Me In Someone Else’s Vehicle? YES! You are protected by your car insurance when driving another person’s vehicle. The vehicle owner’s insurance pays first then your insurance pays after. This helps you when the vehicle owner has low limits, 25/50/20, or if they have no insurance at all. Fully discuss this topic. Use examples and different scenarios to illustrate.

Purchasing a New vehicle- Is there any Coverage? If you trade your vehicle in you should have the same coverage as the vehicle you traded. Warning: if you are getting a brand new car you may want to increase your coverage e.g. purchasing comprehensive & collision coverage What if I don’t trade the vehicle in but instead purchase another vehicle- is there coverage for this new vehicle? There is coverage but look at your policy as it may not be enough. Call your insurance agent before you purchase the automobile!

You Do the math What would your auto insurance policy pay? You have an auto policy with minimum state required limits 15/30/5 While driving your friend to school you swerve to avoid a pothole. You hit the car in the next lane causing it to swerve off the road and hit a fence. There is a mother and small child in the vehicle. Hint: 15/30/5 is 15,000 per person for bodily injury, 30,000 per accident for bodily injury, and $5000 for property damage. Injuries to your best friend $3,000 Injuries to the small child $10,000 Injuries to the mother $25,000 Damage to the other vehicle $15,000 Damage to the fence $2000 What would your auto insurance policy pay?

Medical Payments Medical Payments Cover medical expenses to you and your passengers. Also you are covered if you are passenger in another vehicle or if you are hit by a vehicle when you are a pedestrian. Cover pays and doesn’t care who is at fault for the accident. It even covers if you get hurt getting in or out of the vehicle. Fully discuss this topic. Use examples and different scenarios to illustrate.

Uninsured Motorist Uninsured Motorist Pays your damages if hit by someone who doesn’t have insurance. Also pays if you are hit by a hit-and-run driver. It even covers you if you are struck as a pedestrian and the vehicle does not have insurance. Most important condition for coverage to apply is that the other person must be at fault! Limits are usually same as liability limits. Important to have both higher liability limits and higher uninsured motorist limits. Explain each of these bulleted items in detail with real life examples, maybe a claim you have dealt with at your job. Explain the benefits and downfalls of each type of coverage.

Am I Covered or Not? Think of different scenarios that could happen to your vehicle and the consequences afterwards. Discuss as a group- are they covered or not?? Example: Your car gets hit by a deer. The car is totaled. You need to tow the old vehicle, get a rental vehicle and buy a new one. As students give you examples write them on the board to later explain if these perils are covered or not covered. After about 5 to 7 examples move on to examining whether it is covered or not covered. Make sure you discuss the difference between having Liability and Physical Damage Insurance and how these two affect how the peril is covered by the insurance company.

Coverage for your auto Collision covers damage caused by impact with another vehicle, object or overturn of your vehicle Other than Collision provides protection from theft, fire, windstorm, hail, flood, falling objects, collision with animal, broken windshield. Does not cover: Flat tire or blowout Mechanical breakdown Maintenance for your car

Does my insurance cover a rental car after a car accident? YES but… If you have purchased physical damage coverage- collision coverage- then you also have “loss of use” coverage to help pay for a rental car after a covered accident but it may not cover all of your expenses- call your insurance agent to verify coverage.

What To Do After an Accident What would you do? Here are steps you should take: Call the police Protect the car from further damage Agree to medical exams File the claim with your insurance company Allow insurance company to inspect & appraise your vehicle Cooperate throughout the whole process Keep all legal papers, they must be sent to the insurance company Most Important- Call Your Insurance agent When you feel the discussion on what would you do after an accident has gone long enough you can click the mouse to show what steps should be taken. Discuss proper steps in reporting a claim, dealing with an accidents, why your rates go up, etc. Use examples.

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