Auto Insurance

Slides:



Advertisements
Similar presentations
Automobile Insurance Managing the Risk.
Advertisements

I NSURANCE B ASICS (D ON T R ISK I T ). W HAT IS I NSURANCE ? Risk management tool that limits financial loss due to illness, injury or damage in exchange.
Automobile Insurance Managing the Risk G1 © Family Economics & Financial Education – Revised February 2009– Transportation Unit – Automobile Insurance.
G1 © Family Economics & Financial Education – Revised February 2009– Transportation Unit – Automobile Insurance Funded by a grant from Take Charge.
Are You Ready to Drive? Ask yourself…Ask yourself… –Do I have a license? –Is my car registered? –Am I covered by auto insurance?
Auto Insurance. Insurance Basics Insurance is a way of planning for the unknown Why do we need auto insurance? Accidents can be VERY expensive.
Collisions and Insurance. Stop immediately Assist the injured Control the scene Notify the police Exchange information Duties If Involved in a Crash Notify.
Auto Insurance. Why It’s Needed Accidents are expensive Car theft is common It’s required by law (in most states)
Chapter 33 Vehicle Insurance pp Introduction to Business, Chapter 33 Slide 2 of 60 Why It’s Important Most states require you to have some form.
1. Comprehensive Coverage – includes all physical damage losses except collision and other specified losses. Usually includes.
Insurance & Risk Management. Can You Believe?  The number of insurance claims for auto accidents involving teens is ____% higher than those for adults.
Homeowners and Auto Insurance
Vehicle Insurance Chapter 33. Types of Vehicle InsuranceLaws on Vehicle InsuranceThe Costs of Insurance Basics Bodily Injury Liability Property Damage.
Managing Your Personal Finance UNIT 2: GETTING YOUR FIRST CAR Topic: CAR INSURANCE.
Stock Market Analysis and Personal Finance Mr. Bernstein Motor Vehicle Insurance, pp June 8, 2015.
Insurance Your Protection. Risk The chance that something unexpected will occur. Risk Management  Various ways to deal with potential personal or financial.
Insurance Is protection for individuals against possible financial losses Provides protection against many risks such as unexpected property loss, illness.
Insurance Are you ready for an accident? Senior Advisory – May 4, 2015.
NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Unit 6 - Insurance: Protecting What You Have.
Managing Your Personal Finance UNIT 3:3 GETTING YOR FIRST CAR Topic: CAR INSURANCE.
Unit Six Insurance: Your Protection. Questions to be Answered: Why have insurance? Why have insurance? What is risk management? What is risk management?
Auto Insurance. POP QUIZ!!!! GET OUT PENCIL AND PAPER!
Vehicle Insurance Chapter 38. Economic Risks of Owning a Car Risks – Accident Damage to yourself Damage to your vehicle Damage to others Damage to others.
© 2005 Consumer Jungle Insuring a New or Used Car.
Automobile Insurance Managing the Risk G1 © Family Economics & Financial Education – Revised November 2004 – Transportation Unit – Automobile.
Automobile Insurance Managing the Risk G1 © Family Economics & Financial Education – Revised November 2004 – Transportation Unit – Automobile.
Chapter 25 Insuring Against Loss. Nature of Insurance Use insurance to protect themselves from risk due to fire, accident, or other catastrophes. People.
Insurance Protecting What You Have. ExposureRisk Potential Loss Accident or Illness PropertyOwnership Liability Loss of income from inability to work;
Car Insurance Terms to know: Terms to know: Financial Responsibility Laws Financial Responsibility Laws Premium Premium Deductible Deductible.
Buying a Car Jeopardy Final Jeopardy Car Buying Vocabulary Insurance Types of Coverage All.
NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Unit 6 - Insurance: Protecting What You Have.
VEHICLE INSURANCE. Why It’s Important Most states require you to have some form of vehicle insurance. To get the best value, you need to know the choices.
Chapter 38 Vehicle Insurance.
Today’s Agenda  Targets : State what factors affect insurance rates Apply insurance concepts and terminology to traffic accident cases.
Vehicle Insurance Section 9-4. Who or What is Protected? / You / Your vehicle / Another person / Another’s property / You / Your vehicle / Another person.
Insurance Take Charge of Your Finances G1.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Auto Insurance Information Mr. Blais Law and You.
Car Insurance. Premium and Deductable Premium is your monthly/semiannual/yearly fixed payment Deductable is the amount you pay out of pocket when filing.
Jessica, Shelby, Brittany & Allie. Bodily Injury Liability Coverage- protects you against financial loss when you are responsible for injuring other people.
So here you are… It’s a beautiful sunshine-filled day…. You’re driving along….
Looking at Insurance: Auto and Home Chapter 9. *Risk Factors – Auto Insurance costs Rating Territory Driver Classification Age Gender Marital status Driving.
V EHICLE I NSURANCE Chapter 14, A BOUT THE R ISKS  All states have a financial responsibility law. This means you will be held responsible for.
INSURANCE Reimbursement for personal or financial loss.
NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Unit 6 - Insurance: Protecting What You Have.
Seminar: Timely Topics for Today’s Business World Mr. Bernstein Motor Vehicle Insurance January 21-22, 2015.
Managing the Risk G1 © Family Economics & Financial Education – Revised February 2009– Transportation Unit – Automobile Insurance – Slide 2 Funded.
Liability coverage – covers liability and expenses when you’re at fault in an accident Bodily Injury Liability (BIL) – pays for the medical expenses of.
Insurance and Investments Lesson 5. Insurance Why is it important? –Risk: chance of loss from some type of danger Can be reduced (helmet, seatbelt, locked.
Chapter 16 Part III Motor Vehicle Insurance. Financial Responsibility Anyone who owns or drives a vehicle should have protection against personal injury.
What is a Premium? The amount of money charged by the Insurance companies for active coverage.
Insurance 101 Personal Finance. Learning Goal To be able to define terms relating to insurance.
Insurance Automobile and Health. What is insurance?  Insurance – Manage your risk of financial loss from illness, injury or damage.  Premium – Regular,
Insurance: Your Protection Financial Literacy Mrs. Dayley.
Unit 8: INSURANCE. 1. According to the Unit 8 reading: Risk is defined as ….. Chance of loss from some type of danger.
Risk Management and Insurance: Auto Insurance. Auto Insurance Required by law in New Jersey.
Insurance 101 “Risk Management” Insurance Risk Management Protection against Financial Loss.
Auto Insurance. Objectives Students will identify the factors that affect the cost of automobile insurance Students will identify the various types of.
WHY BUY IT?? VEHICLE INSURANCE. Why It’s Important Most states require you to have some form of vehicle insurance. To get the best value, you need to.
Lesson Three: Insuring a New or Used Car. Auto Insurance Based on Risk & Loss Why do you need it? –To financially protect yourself, others, and your car.
Unit 8: INSURANCE.
Car Insurance.
Automobile Insurance Managing the Risk.
Auto Insurance.
* Take Charge of Your Finances G1
Automobile Insurance Managing the Risk.
Insurance Basics (Don’t Risk It)
Automobile Insurance: The Basics
Automobile Insurance Managing the Risk.
Automobile Insurance Managing the Risk.
Presentation transcript:

Auto Insurance

Automobile Insurance  Why do we need it? Auto crashes - leading cause of death Teens account for 20% of all accidents Economic Cost - $150 billion/year  It’s required! Liability insurance required in most states Risk Management $$$

Property Damage Liability Covers damage that you cause to other people’s property as a result operating a motor vehicle Required by law

Bodily Injury Liability Injury that you cause to other people as a result operating a motor vehicle. Required by law

Collision Protects against damage to YOUR vehicle due to a traffic accident and its YOUR fault. Not required by states, BUT required by your lender! Insurance will only pay for damages up to current value of your car  TOTAL LOSS

Medical Payments Covers injuries to you or your passengers due to a traffic accident regardless of who is at fault.

Comprehensive Protects against loss to your vehicle (physical damage) due to non-collision causes:  Theft  Vandalism  Fire  Hail Damage

Uninsured / Underinsured Covers injuries to you, your family or passengers or damages to your car when in an accident caused by an uninsured or underinsured driver

CoverageWho’s faultWhat’s covered Bodily Injury Liability YOURSThe other PEOPLE Property Damage Liability YOURSThe other CAR/PROPERTY Medical PaymentsDoesn’t matter You and those in your car Uninsured/ Underinsured motorist THEIRSCompensates for anything the other drive was supposed to be responsible for ComprehensiveNature, theft, vandalism Your car CollisionYOURSYour car

What affects insurance rates?  Higher deductibles = Lower Premium You take on more of the risk  Older cars: Can you drop those Collision and Comprehensive Coverages – assess the risk!  Multi-car Discounts  Increase amount of coverage

What affects insurance rates?  Marital Status: Singles pay more  Grades: Good Grades= Lower Premiums  Driving Record Many accidents = Higher Premium  Sport cars= Higher rates Color not a factor  Age: Older drivers (over 25) get better rates  Residence/Commute- city or suburbs, distance

Who Pays the Most? UNMARRIED MALE DRIVERS, AGES 16-25

How can you lower?  Be a responsible driver  Drive a moderately priced car Discounts for certain safety features  Good grades  Live in safe neighborhoods  Increase the size of your deductible  Live responsibly

What to Do in Case of an Accident Get to a safe place, be careful getting out Check for injuries. Do not move anyone! Call 911 Exchange info with other driver. Ask for a copy of the police report and report to your insurance company

Other Tips  Stay Calm  Do Not admit guilt  Do Not reveal how much coverage your have  Take pictures  Do Not accept cash

Split Limits 50 / 150 / 75 1#- Bodily injury caused to one person 2# Bodily injuries caused to everyone 3# Total amount of property damage