Automobile Insurance **The primary purpose of auto insurance is to protect you from potential liability claims in the event that you cause an accident. **All car insurance policies will carry a premium and a deductible. Deductible- -A specified amount of money you must pay before your insurance company will pay a claim. *A lower deductible means you pay a higher premium every month. *A higher deductible means you pay a lower premium every month.

If you have a $250 deductible and then have a wreck causing $4300 in damage To your car, how much will you pay out of pocket? $250 How much will your insurance company pay? $4050

Factors Affecting Insurance Rates Age Driving Record Gaps in Insurance Coverage Value or Reliability of Car Location a. high crime areas b. highly populated areas 6. Annual Mileage

Liability insurance is mandatory in most states. Two Types of Liability Insurance Bodily Injury Liability -does NOT cover you -covers injuries or death of others caused by you -medical bills, loss wages, pain and suffering b. Property Damage Liability -does NOT cover your property -damages you cause to another’s car -vehicles, houses, fences, shrubs, trees, etc.

What does “$100,000/$300,000” in bodily injury mean? $100,000 per individual $300,000 per accident If you had this amount of coverage and you injured six people, how Much would your insurance pay out to each person? $300,000/6 people= $50,000 each person **You may have to pay from your own pockets if you don’t carry enough coverage.

Comprehensive Coverage- -covers incidents other than collision such as fire, theft, floods, earthquakes, tornados, etc. **Carry a higher deductible on comprehensive to save on monthly premiums.

Collision Coverage- -Pays for damage to your vehicle. - -Not really worth it if you drive a low value car.

Uninsured Motorists Coverage- -covers repairs for your car when hit by someone without insurance.

**Create a public service announcement poster that will bring attention to the need for one of the types of insurance coverage. -Picture(s) -Color -Clear Message

Bodily Injury Liability Property Damage Liability Comprehensive Coverage Hunter B Lauren F Cynkendric Corey Alicia Shelby Caden Alex Christopher Hailey Joshua Lauren K Hunter B Elijah Ashton Collision Uninsured Motorists Full Coverage Kenneth Emery Kaitlyn Kelly Mary Amy Jarvis Noah Logan Jordan Lydia Devon Olivia Sydney