1. Automobile Insurance: Coverage Types

2. Time to Pick a Car and Get on the Road
Automobile Insurance: Coverage Types
Time to Pick a Car and Get on the Road
Closest to the MSRP
(Manufacturer’s Suggested Retail Price)
Without going over – wins!

3. 2005 Honda Civic LX Automatic Transmission Dual Zone Air Conditioner
Keyless Entry
Auto Lock Brakes

4. The MSRP is
$16,975

5. 2005 Mitsubishi Spyder GT Automatic, 4-Spd w/Overdrive & Sportronic
V6, 3.0 Liter
Leather Interior

6. The MSRP is
$28,944

7. 2005 Hummer H2 SUV 7-Spoke Aluminum Automatic, 4-Spd HD
Leather Surfaced Heated Bucket Seats
V8, 6.0 Liter Engine

8. The MSRP is
$53,280

9. Are You Ready to Drive? Ask yourself… Do I have a license?
Is my car registered?
Am I covered by auto insurance?

10. Why do I need auto insurance
It’s the law!
There are risks you can’t afford to take
What happens if…
You’re involved in a crash that causes property damage?
You hurt yourself or someone else?
Your car is damaged when you’re not driving it? (by weather, vandalism or a hit-and-run)
Your car is stolen?
Your car breaks down and needs to be towed?

11. Types of Automobile Insurance Coverages
Three Questions
What are third-party coverages?
What are first-party injury coverages?
3. What are first-party property coverages?

12. Types of Automobile Insurance Coverages
What are third-party coverages?
Bodily Injury Liability
People costs (medical expenses, lost wages, pain and suffering)
Property Damage Liability
Things (other cars and property)
Both are types of coverage required by law in most states

13. Types of Automobile Insurance Coverages
What are first-party injury coverages?
Medical Payments (MedPay)
Covers medical and funeral expenses resulting from accidents with your vehicle
Personal Injury Protection (PIP)
Extends MedPay to include lost wages
Uninsured Motorists
Covers expenses if the at fault driver does not have coverage
Underinsured Motorists
Covers expenses when the at fault driver does not have enough coverage

14. Types of Automobile Insurance Coverages
What are first-party property coverages?
Comprehensive
Compensates you for physical damage to your car, including theft, vandalism, natural disasters
Collision
Pays for damage to your vehicle in case of collision
Both Coverages require you to pay a deductible

15. What is a Deductible?
This is the amount per accident that you pay out of pocket before insurance starts to pay
Common deductible amounts are usually $250, $500, and $1000
The higher the deductible amount you pay the lower your premiums are

16. Types of Automobile Insurance Coverages
Review
What are third-party coverages?
What are first-party injury coverages?
3. What are first-party property coverages?

17. Now You Decide Choose a Car (of the 3 shown) Define Insurance Terms
Select Type(s) of Insurance
Explain your choices (why or why not)