1. WHAT YOU NEED TO KNOW AS A BEGINNING DRIVER!
AUTOMOBILE INSURANCE
WHAT YOU NEED TO KNOW AS A BEGINNING DRIVER!

2. Do Now
What type of insurance is required in NJ?

3. Answer
Liability

4. Learning Partner #3 Brainstorm
What and who could possibly be damaged in an automobile accident?
How is it covered?

5. Your car?
Another car(s)?
Personal or business property?
You, the driver?
Your passenger(s)?
Occupants in other cars or vehicles?
Public property: street signs, bridges, school buses?

6. INSURANCE
Mandatory in New Jersey- Liability insurance (this coverage pays others for damages from an auto accident that you cause. It also pays for a lawyer to defend you if you are sued for damages that you cause)
A NJ insurance ID card will be provided for each vehicle insured under a policy.
When to show insurance
Prior to inspection
Involved in an accident
Stopped by law enforcement

7. ARE YOU AGE ?
Statistics STATISTICS SHOW THAT TEENAGERS HAVE A GREATER CHANCE OF BECOMING INVOLVED IN AN ACCIDENT THAN DRIVERS IN ANY OTHER AGE GROUP!

8. Terms to Know
Agent – A person who sells insurance; your direct contact with an insurance company.
At-fault – Describes the person who did something to cause an accident.
Deductible – The amount of money you agree to pay when there is a loss.
Insured – The person receiving insurance coverage under the insurance policy.
Insurer – Another term for the insurance company or anyone who provides insurance.
Policy – A written document that serves as evidence of an insurance contract which contains the pertinent facts about the policy owner, the insurance coverage, the insured and the insurer.
Premium – The amount you pay in exchange for insurance coverage.
Claim – request by the customer for a payment following an accident.

9. WHAT’S REQUIRED IN NJ? THERE ARE 3 TYPES. 1 YOU ARE REQUIRED TO BUY.
IT IS ILLEGAL TO DRIVE WITHOUT THE REQUIRED COVERAGES.

10. REQUIRED LIABILITY*** required to buy NJ
Covers damage to others property and persons.
Minimum 15/30/5 (one person-single claim-property)
PERSONAL INJURY PROTECTION (PIP)
Covers your medical cost
UNINSURED/UNDERINSURED
Covers you incase of uninsured driver
Insurance

11. LIABILITY (BODILY INJURY)
COVERS THOSE INJURED/KILLED FOR WHICH YOU ARE LEGALLY TO BLAME.
YOU ARE REQUIRED TO PURCHASE THE MINIMUM:
$15,000 FOR INJURIES TO ONE PERSON.
$30,000 FOR ALL INJURIES IN A SINGLE CLAIM.

12. LIABILITY (PROPERTY DAMAGE)
PAYS TO REPAIR DAMAGE TO OTHER PEOPLES CARS/PROPERTY CAUSED BY YOUR AUTOMOBILE.
THE MINIMUM REQUIREMENT IS $5,000.

13. 2 OPTIONAL COVERAGES COLLISION
PAYS FOR THE COST TO REPAIR YOUR CAR IF YOU ARE AT FAULT.
INVOLVES A DEDUCTIBLE (amount you must pay first)
MAXIMUM PAYOUT IS BASED ON “BLUE BOOK” VALUE OF THE CAR.
REQUIRED BY LEASE/FINANCE PLANS.
Kelley Blue Book

14. 2 OPTIONAL COVERAGES COMPREHENSIVE
PAYS THE COST OF REPAIRS/REPLACEMENT IF YOUR CAR IS:
STOLEN
VANDALIZED
DAMAGED BY: FLOOD, DEBRIS, ANIMALS, NATURE.
INVOLVES A DEDUCTIBLE

15. Deductible DEFINITION of 'Deductible'
The amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs.
BREAKING DOWN 'Deductible'
For example, if you get into an accident and your medical expenses are $2,000 and your deductible is $300, then you would have to pay the $300 out-of-pocket first before the insurance company paid the remaining $1,700. However, if your accident only resulted in $300 in medical expenses, then you would pay the $300 deductible and the insurance company would pay nothing.

16. 2 TYPES OF “RIDERS”/ ENDORSEMENTS
TOWING
PAYS FOR THE PARTIAL COST OF
TOWING YOUR VEHICLE
RENTAL REIMBURSEMENT
PAYS PARTIAL COST OF RENTAL FEE IF YOUR CAR IS NOT DRIVEABLE.

17. INSURANCE COSTS FACTORS THAT CONTROL YOUR RATES 1. AGE 2. GENDER
3. MARITAL STATUS
4. TYPE OF CAR (MAKE, MODEL, OPTIONS)
5. WHERE CAR IS KEPT (STREET, DRIVEWAY, GARAGE)
6. PREVIOUS DRIVING RECORD

18. POSSIBLE DISCOUNTS
DRIVER TRAINING (BTW, DEFENSIVE DRIVING COURSE, CLASSROOM D.E.).
SAFETY EQUIPMENT (ABS (anti-lock braking system), AIR BAGS, AUTO SEATBELTS, TRACTION CONTROL SYSTEMS, SAFETY BUMPERS).
ACADEMICS (HONOR ROLL, 3.0)
ANTI-THEFT DEVICES (ALARMS,TRANSMITTERS, WINDOW ETCHING)
MULTI-CAR DISCOUNTS
GOOD DRIVING RECORD

19. Types
NJ auto insurance rating

20. AAA Superbowl 15 https://www. youtube. com/watch
AAA Superbowl Allstate Cure Liberty Progressive
Nationwide

21. Summarizer
Complete factors that affect car insurance worksheet

22. Summarizer
You lost control of your car, slammed into a house and caused $30,000 worth of damage. Your property damage limit is $25,000. How much will come out of your pocket?

23. Answer
5,000