Insurance The purpose of insurance is to provide financial protection against different kinds of risks we face throughout life.

Types of Insurance Auto Home Health Life Disability

Insurance Policy This is a written agreement between you and the insurance company that defines the following: Kinds of loss covered How much the company will pay for covered losses How much you will pay for the coverage

Insurance Policy Coverage limits – Maximum amount company will pay for your loss Deductible – The amount of the loss you must pay before the company will step in and pay the claim Claim – a request for payment of a loss Premium – The amount of money you must pay per month, quarter or year in order to guarantee your coverage

Four main factors of premium costs Your age Where you live (city or rural) Credit History (grades can also be used) Marital status

Question... Why do Insurance companies view me as a lower risk than any of you?

'Cause... For most types of insurance, companies assume that people who are older (but not too old), married, live outside of cities, and have a good credit score are less risky to insure.

Auto Insurance

Auto Insurance This is the first insurance you are likely to purchase. All states require drivers to obtain a minimum amount of auto insurance to legally drive on public roads. The state minimum for Georgia is Liability only

Auto insurance coverage Liability - Pays for personal injuries and property damage Collision - Pays for damage to your car Comprehensive - Damage to your car not caused by an accident (theft, vandalism, natural disaster)

For instance....

How much do I pay? Let's say that you are in an accident and the total cost is $1500. Your deductible is $500 Therefore, you will pay $500 and the insurance company will pay $1000

Of teens and insurance rates Teens pay a higher rate because, statistically, they have more accidents than adult drivers Teen male drivers pay a higher rate than teen female drivers for the same reason