1. Insurance Basics for Students
Automobile Insurance
Insurance Basics
for Students
Automobile Insurance - Ohio Insurance Institute -

2. Evaluating Your Insurance Needs
Auto Insurance
Parts of an auto policy
Auto insurance cost factors
Teen crashes
Auto insurance laws in Ohio
Financial Responsibility law
Graduated Licensing law
Your insurance needs
Shopping for Insurance
Cost saving tips
Tips for settling an insurance claim
Automobile Insurance - Ohio Insurance Institute -

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

4. Parts of an Auto Insurance Policy
Coverages
Bodily Injury Liability
Property Damage Liability
Medical Payments
Uninsured Motorists
Underinsured Motorists
Uninsured Motorists Property Damage
Damage to Your Auto
Collision
Other Than Collision (Comprehensive)
Automobile Insurance - Ohio Insurance Institute -

5. Parts of an Auto Insurance Policy
Definitions
Terms of policy defined
Exclusions
What’s Not Covered in the policy
Conditions
Responsibilities of the contract are specified for you and the company
Automobile Insurance - Ohio Insurance Institute -

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

7. Teen Crashes Top contributors to teen crashes Inexperience Speeding
Passengers / Distractions
Night driving / Road conditions / Weather
Low safety belt use
Automobile Insurance - Ohio Insurance Institute -

8. Auto Insurance Laws Ohio’s Financial Responsibility law
Requirements met by having one of the following:
Auto Liability insurance (25,000/50,000 BI; 25,000 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
Automobile Insurance - Ohio Insurance Institute -

9. Auto Insurance Laws Ohio’s Financial Responsibility law
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
Auto insurers provide an Auto Insurance ID Card
Keep it in car - satisfies FR proof when asked by law enforcement officials
An electronic insurance ID card is also an accepted form of insurance proof in Ohio and many other states
Automobile Insurance - Ohio Insurance Institute -

10. Auto Insurance Laws Financial Responsibility law Penalties
Lose Drivers least 90 days, up to two years
Petition court for limited driving privileges during suspension
License plate & vehicle registration suspension
License reinstatement fees of $100-$600
Requirement to obtain insurance for three to five years - monitored by insurers and BMV
Vehicle immobilization and confiscation of license plates for violation FR suspension
3rd and subsequent offenses - could mean vehicle forfeiture + 5-year moratorium on vehicle registrations
Automobile Insurance - Ohio Insurance Institute -

11. Auto Insurance Laws Ohio’s Graduated Licensing law
Temporary permits can be obtained at 15 1/2
Drivers training component
Drivers Education Training
Plus 50 hours behind the wheel with Mom & Dad
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
Curfew restrictions & penalties apply
Driving under the influence
Moving violations
Automobile Insurance - Ohio Insurance Institute -

12. Your Insurance Needs Shopping for insurance Insurance premiums
Agent, 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
Evaluate your need for an agent - is it important to you to have an insurance professional for advice?
Insurance premiums
Paid monthly, quarterly, semiannually, or yearly
Homeowners - watch for PITI in your mortgage
Principal, Interest, Taxes, Insurance
Automobile Insurance - Ohio Insurance Institute -

13. Your Insurance Needs Insurance cost saving tips Ask about discounts
Good student, more than one car, carrying other types of insurance with the same company
Increase deductibles
Generally, the higher the deductible, the lower the premium
Avoid filing frivolous and/or excessive claims
Comparison shop
Keep property (car and home) well maintained
Automobile Insurance - Ohio Insurance Institute -

14. Your Insurance Needs Settling an insurance claim
Contact insurance agent/company ASAP
Take steps to prevent future losses to property
Gather as much info as possible about the loss
witnesses, videotape/photo damaged property
An insurance company representative will contact you (claims adjuster) asking details about the loss
Adjuster may want to record your conversation
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 (
Automobile Insurance - Ohio Insurance Institute -

15. Resources
Auto Insurance Teen Guide:
Auto Insurance, Ohio’s FR Law, Auto Accident Checklist & Insurance Consumer Tips Fact Pak brochures:

16. OII Mission Statement
To strengthen public understanding of and confidence in Ohio’s property/casualty insurance industry.
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.
Automobile Insurance - Ohio Insurance Institute -

17. How to reach OII
Phone:
US Mail:
OHIO INSURANCE INSTITUTE
172 E. State Street, Suite 201
Columbus, OH
Automobile Insurance - Ohio Insurance Institute -