Evaluating Your Insurance Needs Insurance Basics for Students Heading Out on Their Own

Evaluating Your Insurance Needs n Auto Insurance n Parts of an auto policy n Factors that determine what auto insurance costs n Auto insurance laws in Ohio n Renters Insurance n Types of homeowners policies

Evaluating Your Insurance Needs n Your Insurance Needs n Shopping for insurance n Insurance premiums n Insurance cost saving tips n Settling an insurance claim

Parts of an Auto Insurance Policy n Declarations n Your Information –Who’s insured (name and address) –Vehicle(s) covered (V.I.N.) n Your policy specifics –Amount of insurance - Policy Limits –Premium (the price of insurance coverage)

Parts of an Auto Insurance Policy n Coverages n Bodily Injury Liability n Property Damage Liability n Medical Payments n Uninsured Motorists n Underinsured Motorists n Uninsured Motorists Property Damage n Damage to Your Auto –Collision –Other Than Collision (Comprehensive)

Parts of an Auto Insurance Policy n Definitions –Terms of policy defined n Exclusions –What’s Not Covered in the policy n Conditions –Responsibilities of the contract are specified for you and the company

Auto Insurance Cost Factors n Factors that determine cost of insurance n Use of car (to & from work, pleasure) n Value / Type of car (make & model) n Repair costs for car & occupants (crashworthiness) n Where you live and how car is parked n Your driving record n Coverage limits n Sex & Marital status n Good Student Discount n Age of drivers

Teen Crashes n Top contributors to teen crashes n Inexperience n Speeding n Passengers / Distractions n Night driving / Road conditions / Weather n Low safety belt use n John Hopkins University study n 16 yr. old drivers - higher risk of dying behind the wheel –39% higher with the addition of 1 passenger –86% higher with 2 passengers –182% higher with 3 or more passengers

Auto Insurance Laws n Ohio’s Financial Responsibility law n Requirements met by having one of the following: –Auto Liability insurance (12,500/25,000 BI; 7,500 PD) –Surety bond of $30,000 –BMV Certificate - bond of $30,000 on file with BMV –BMV Certificate - bond of $60,000 in real estate on file –Certificate of Self Insurance - those w/ 25 or more cars

Auto Insurance Laws n Ohio’s Financial Responsibility law n Required to show proof of FR when: –A moving violation requires a court appearance –When stopped by law enforcement officials for a traffic violation, vehicle safety inspection or involved in a crash and asked to provide it –Contacted via mail through the BMV random verification program n Auto insurers provide an Auto Insurance ID Card –Keep it in car - satisfies FR proof when asked by law enforcement officials

Auto Insurance Laws n Financial Responsibility law Penalties n Lose Drivers least 90 days up to 2 years n Petition court for limited driving privileges n License plate & vehicle registration suspension n License reinstatement fees of $75-$500 n Requirement to obtain insurance for five years - monitored by insurers and BMV n Vehicle immobilization and confiscation of license plates for days for violation FR suspension –3rd and subsequent offenses - could mean vehicle forfeiture + 5-year moratorium on vehicle registrations

Auto Insurance Laws n Ohio’s Graduated Licensing law n Temporary permits can be obtained at 15 1/2 –Drivers training component n Drivers Education Training n Plus 50 hours behind the wheel with Mom & Dad n Probationary drivers license –At least 16 years old –Must pass BMV driving and maneuverability test –Probationary license held until 18 when full privileges without restrictions granted n Curfew restrictions n Penalties –Driving under the influence –Moving violations

Renters Insurance n A “package” policy n Personal belongings n Liability coverage n Medical payments to others n Damage to property of others n Additional living expenses n Buildings & structures (with a homeowners policy)

Renters Insurance n Types of homeowners policies n Renter –Covers belongings and provides liability coverage n Condo Owner –Covers belongings, some improvements to interior walls and provides liability coverage n Home Owner –Covers belongings, the building and structures and provides liability coverage

Your Insurance Needs n Shopping for insurance n Agent, toll-free numbers, internet –Have agent/company representative explain what’s NOT COVERED in the policy - this avoids surprises after a loss –Many prefer to investigate coverage options and prices via the web, then contact an agent or company n Evaluate your need for an agent - is it important to you to have an insurance professional for advice? n Insurance premiums n Paid monthly, quarterly, semiannually, or yearly n Homeowners - watch for PITI in your mortgage –Principal, Interest, Taxes, Insurance

Your Insurance Needs n Insurance cost saving tips n Ask about discounts n Good student, more than one car, carrying other types of insurance with the same company n Increase deductibles n Generally, the higher the deductible, the lower the premium n Avoid filing frivolous and/or excessive claims n Comparison shop n Keep property (car and home) well maintained n Use credit wisely and only as needed

Your Insurance Needs n Settling an insurance claim n Contact insurance agent/company ASAP n Take steps to prevent future losses to property n Gather as much info as possible about the loss –witnesses, videotape/photo damaged property n An insurance company representative will contact you (claims adjuster) asking details about the loss –Adjuster may want to record your conversation n Work with adjuster to an agreeable negotiation –If not satisfied, you have the option to contact Ohio Dept. of Insurance - Consumer Services Division - for info or to file a complaint (

OII Mission Statement n To strengthen public understanding of and confidence in Ohio’s property/casualty insurance industry. n The OII is a public information and trade association representing insurance companies and agent groups for the property/casualty insurance industry. A primary objective of the OII is to help Ohioans achieve a better understanding of insurance and related safety issues.

How to reach OII n Phone: n Fax: n n n US Mail: –OHIO INSURANCE INSTITUTE –P.O. Box 816 –Columbus, OH