Lines of Insurance What They Are and Why They Are Important Created in part by The Texas Department of Insurance

Major Lines of Personal Insurance Auto Health Life Homeowner’s Disability

Auto Insurance Liability means obligation. If you are in an accident, liability insurance will pay for injured parties and properties. Liability means obligation. If you are in an accident, liability insurance will pay for injured parties and properties. It will NOT cover your injuries! You will need to buy more insurance than the legal minimum to cover (insure) yourself and your property. It will NOT cover your injuries! You will need to buy more insurance than the legal minimum to cover (insure) yourself and your property.

Auto Insurance If you drive a car in Washington, you must have the legal minimum amount of auto liability insurance. If you drive a car in Washington, you must have the legal minimum amount of auto liability insurance. By law, you must have at least auto liability insurance. By law, you must have at least auto liability insurance.

Proof of Current Insurance You will have to show proof of current insurance when you: Get pulled over by the police. Get your car inspected. Renew your drivers license. Apply for or renew the registration for your car.

Auto Insurance If you are pulled over, a police officer can easily check to see if you have valid insurance for your car. If you are caught without insurance, you can be fined hundreds of dollars and possibly lose your license. Bottom line: If you drive, you must have car insurance!

Auto Insurance Four types of COVERAGE 1. Liability 2. Medical Payments 3. Uninsured/Underinsured 4. Physical Damage: Collision Collision Comprehensive Comprehensive LIABILITY LIABILITY When the insured causes BODILY INJURY or PROPERTY DAMAGE to others (NOT in the insured’s car)

Auto Insurance Four types of COVERAGE 1. Liability 2. Medical Payments 3. Uninsured/Underinsured 4. Physical Damage: Collision Collision Comprehensive Comprehensive MEDICAL PAYMENTS MEDICAL PAYMENTS PIP - Personal InjuryProtection Covers injuries to the driver of the insured vehicle or to any passenger regardless of fault. It also covers insured Family members injured as passengers in any car OR as pedestrians or bicyclists!

Auto Insurance Four types of COVERAGE 1. Liability 2. Medical Payments 3. Uninsured/Underinsured 4. Physical Damage: Collision Collision Comprehensive Comprehensive UNINSURED/ UNINSURED/ UNDERINSURED UNDERINSURED Covers injury or damage to the driver, passengers, or the vehicle caused by a driver with insufficient coverage.

Auto Insurance Four types of COVERAGE 1. Liability 2. Medical Payments 3. Uninsured/Underinsured 4. Physical Damage: Collision Collision Comprehensive Comprehensive PHYSICAL DAMAGE PHYSICAL DAMAGE Collision covers damage from a collision with a car or object OR from a rollover Comprehensive Comprehensive covers all other physical damage except as noted above.

Reading the Coverage Example: 50/100/10 LIABILITY coverage Each number represents thousands of dollars. 1 st number = per person coverage 1 st number = per person coverage 2 nd number = total accident coverage 2 nd number = total accident coverage 3 rd number = 3 rd number = property damage property damage

Auto Insurance Premiums Many factors affect the amount of your premium, such as: The coverage limits The coverage limits The deductible The deductible Your age, gender, GPA Your age, gender, GPA The color, year, make, and model of your car The color, year, make, and model of your car Your credit history! Your credit history!

Health Insurance Health insurance is important because you never know when you might get sick or injured! Even minor injuries or illnesses can cost thousands of dollars to treat. Many plans will allow you to remain on your parent’s plan until you reach the age of 25 (so long as your parents choose to keep you on the plan). If you go to college or start working, it is a good idea to have health insurance.

Health Insurance If you are not on your parent’s plan, you may be able to get health insurance from: – –Your college (many offer student health insurance plans) – –Your employer (many employers offer their employees health insurance plans) – –Organizations (some organizations offer group health insurance plans) – –Private carriers (remember to shop around to get the best price possible)

Life Insurance Life insurance helps make sure a family has enough money if a primary wage earner dies. It can help the survivors maintain their lifestyle and can help pay funeral costs. It is important to have life insurance if you have family members or other people who depend on you for money.

Life Insurance When you buy life insurance, you decide who your beneficiaries will be and how much they will receive. When you buy life insurance, you decide who your beneficiaries will be and how much they will receive. Beneficiaries are the people the insurance money will go to when the person covered by the policy dies. Beneficiaries are the people the insurance money will go to when the person covered by the policy dies.

Homeowner’s Insurance When you buy a house, keep in mind that insurance is an expense in buying that house. Your lender will require that you have homeowners insurance. Homeowners insurance won’t cover everything. You will need to evaluate your situation and decide if you need additional coverage, such as flood insurance, windstorm insurance, earthquake insurance, etc.

Homeowner’s Insurance A fire occurs in someone’s home in the US every 74 seconds! Homeowner’s insurance combines property and liability insurance into one policy.

Homeowner’s Insurance Property Damage coverage protects a home from damage costs due to perils. Property Damage coverage protects a home from damage costs due to perils. A peril is an event which can cause a financial loss…such as fire, falling trees, lightning, and others. A peril is an event which can cause a financial loss…such as fire, falling trees, lightning, and others.

Homeowner’s Insurance Liability coverage protects the insured from being held liable (responsible) for the financial loss of others. Liability coverage protects the insured from being held liable (responsible) for the financial loss of others. Example: Your guest trips down your stairs and breaks her leg… Example: Your guest trips down your stairs and breaks her leg…

Homeowners Insurance Homeowners insurance also covers your personal property, such as furniture and clothing, and will pay for injuries to other people that occur at your house. The amount of coverage depends on your policy, so make sure to buy the coverage you want and need! A RIDER is necessary to protect “unusual” items such as rare collections, expensive jewelry, silver. If you rent instead of own your home, you will want to get Renter’s Insurance. Renter’s Insurance covers your personal property if your rented home is damaged or if your property is stolen.

Disability Insurance It replaces a PORTION (usually 60% - 70%) of your income if you are unable to work due to illness or injury. It replaces a PORTION (usually 60% - 70%) of your income if you are unable to work due to illness or injury. nAhpCE nAhpCE

Other Lines of Insurance Pet Commercial (coverage for Businesses) Title (for real estate) Jewelry Boat

Remember! Companies charge different rates, even for similar coverages. It pays to shop around! Having insurance does not get you off the hook! You may still be liable (responsible) for paying for damage or replacements. Insurance costs money and requires financial responsibility! Filing an insurance claim can increase future premiums!