Car Insurance – 101 Tom Conklin, State Farm Insurance

What is Insurance? Transfer of Risk Transfer of Risk Law of Large Law of Large Numbers Numbers

What is Car Insurance? Liability Uninsured Motorist Medical Payments Comprehensive Coverage Collision Coverage Towing, Rental, Death Benefit

Do I need Car Insurance? Do I need Car Insurance? State Mandated State Mandated - 25 / 50 / 20 Fine Fine - Minimum $500 Fine - Minimum $500 Fine - High Risk Insurance - High Risk Insurance

What factors impact my insurance premium? What factors impact my insurance premium? Age / Gender Age / Gender Personal Credit Personal Credit Driving Experience / Record Driving Experience / Record Use of Car Use of Car Type of Car Type of Car Where you live….. Where you live…..

How can I lower my premiums? Multi-Car Discount Multi-Car Discount Multi-Line Discount Multi-Line Discount House, Life, Health Insurance House, Life, Health Insurance Accident Free / Good Driver Discount Accident Free / Good Driver Discount

How can you, as a new driver, lower your premiums? Good Student Discount - ( 22% ) Good Student Discount - ( 22% ) “B” semester average ( Good for 1 yr ) “B” semester average ( Good for 1 yr ) Steer Clear Discount - ( 15% ) Steer Clear Discount - ( 15% ) Safety Awareness Course Safety Awareness Course No Tickets / At-fault accident ( Past 3 yrs ) No Tickets / At-fault accident ( Past 3 yrs )

When I turn 16, I am going to drive a ………. (with GSD, SCD, MCD, & MLD) 2013 Chevrolet Cruze 2013 Chevrolet Cruze – $ 859 Male – $ 738 Female 2008 Ford Fusion 2008 Ford Fusion – $ 724 Male – $ 621 Female 1997 Chevy Truck 1997 Chevy Truck – $ 284 Male – $ 241 Female Premiums are given in 6 month figures and youthful driver is rated as primary driver

Same Car without Good Grades and Steer Clear Discount 2013 Chevrolet Cruze 2013 Chevrolet Cruze – $ 1332 Male – $ 1015 Female 2008 Ford Fusion 2008 Ford Fusion – $ 1172 Male – $ 852 Female 1997 Ford F Ford F150 – $ 435 Male – $ 327 Female Premiums are given in 6 month figures and youthful driver is rated as primary driver

Credit Not So Good and/ or tickets & accidents (w/o SCD or GSD) 2013 Chevrolet Cruze 2013 Chevrolet Cruze – $ 2107 Male – $ 1599 Female 2008 Ford Fusion 2008 Ford Fusion – $ 1796 Male – $ 1382 Female 1997 Chevy Truck 1997 Chevy Truck – $ 739 Male – $ 552 Female

I really am a good driver.. but I really am a good driver.. but Speeding Ticket – Speeding Ticket – 0 – 20 mph over = $120 0 – 20 mph over = $ – 30 mph over = $ – 30 mph over = $ =$ =$160 –Possible Revocation of license Texting and driving $120 Texting and driving $120 Greater than 1 passenger under 20 yrs old Greater than 1 passenger under 20 yrs old - Siblings are excluded = $120 Failure to reduce speed to avoid = $120 Failure to reduce speed to avoid = $120 Seat Belt $60 Seat Belt $60

I only had one beer and a drag… DUI / Possession of a Controlled Substance DUI / Possession of a Controlled Substance –License Revoked until age 18 –Reviewed for “possible” reinstatement Breathalyzer - Refuse to “blow” or blow over.04 Breathalyzer - Refuse to “blow” or blow over.04 –Automatically revoked til age 18 No more “Good old boy” police officer’s No more “Good old boy” police officer’s –Video Tape documentation of all traffic stops –Breathalyzer 1 st – questions later

Summary Your driver’s license is a privilege!! Your driver’s license is a privilege!! Who can revoke your license? Who can revoke your license? –Parents – Contact the Secretary of State –Secretary of State Look out for the other guy!!! Look out for the other guy!!!