1. High School Financial Planning Program
Lesson 6-4: Auto Accidents Happen
©2014 National Endowment for Financial Education |

2. High School Financial Planning Program Take action after an accident
Lesson 6-4: Auto Accidents Happen
Auto Accidents Happen
Take action after an accident
Display this slide as you kick off the opening activity.
©2014 National Endowment for Financial Planning | Lesson 6-4: Auto Accidents Happen
©2014 National Endowment for Financial Education |

3. Auto Insurance: True or False?
High School Financial Planning Program
Lesson 6-4: Auto Accidents Happen
Auto insurance covers replacement costs of any personal items stolen out of a car.
Imagine that while you were driving your family’s car, you and your passenger were injured in an auto accident. Your auto insurance will cover damages to your car but not costs for any medical care required by you or your passenger because that is automatically covered by a different medical insurance policy.
Decide in advance if you will facilitate this activity so students individually respond in writing or if you will ask for verbal responses from the whole class as you display the questions.
As you display the five questions on Slides 2 and 3, ask students (silently as individuals or out loud for the whole group discussion) to guess whether the following statements are true or false. After you have asked all of the questions, ask the students which facts were the most surprising.
FALSE. Items that are permanently attached to your car might be covered (i.e. stereo and speakers). Unattached items (i.e. phone, clothing or sport equipment) are not covered in most cases. Another factor is the type of auto insurance you have; not all policies cover theft. However, even if stolen items are not covered by your auto insurance, your renters’ or homeowners’ insurance policy might cover your loss. But there are limits to how much is covered; be informed by reading your insurance policies.
FALSE. Your auto insurance covers damage to the auto within certain limits. If you meet common minimum state requirements, your insurance will also cover medical costs for injuries to the driver and passenger. If medical costs exceed the insurance coverage amount, you will need to pay the difference.
©2014 National Endowment for Financial Planning | Lesson 6-4: Auto Accidents Happen
©2014 National Endowment for Financial Education |

4. Auto Insurance: True or False?
High School Financial Planning Program
Lesson 6-4: Auto Accidents Happen
If someone else driving your car causes an accident, your insurance company is not responsible for damage costs.
If you are injured while a passenger in someone’s car, the first thing you should do after the accident is fill out an insurance claim form before you forget what happened.
If, due to an accident, your family vehicle is unavailable to drive, your insurance company will pay for a rental car to drive to and from work while your car is in a repair shop.
As you display the five questions on Slides 2 and 3, ask students (silently as individuals or out loud for the whole group discussion) to guess whether the following statements are true or false. After you have asked all of the questions, ask the students which facts were the most surprising.
FALSE. It's possible you'll be financially responsible for an accident involving your vehicle — even if someone else is driving your car. In most states, the car insurance policy covering the vehicle is considered the primary insurance, which means that the insurance for the vehicle applies to damages that result due to an accident involving your vehicle up to the coverage limits. Even so, it's still possible that the driver's insurance company could be responsible for some of the damages. It will take time to sort this out between companies.
FALSE. Typically, the first thing to do is seek medical care for any serious injuries. Then the next actions at the scene involve contacting the police, documenting details, exchanging personal contact information and insurance details, and contacting your insurance agent.
FALSE or TRUE, depending on what coverage is purchased when buying auto insurance. Temporary auto rental is not a required coverage, and the terms vary depending on what is agreed upon when buying the insurance policy.
©2014 National Endowment for Financial Planning | Lesson 6-4: Auto Accidents Happen
©2014 National Endowment for Financial Education |

5. High School Financial Planning Program
Lesson 6-4: Auto Accidents Happen
Preview
Today we will answer these questions:
How does auto insurance work?
What is covered by auto insurance?
What should you do (and not do) after an auto accident?
Use what you learn today to explain what is covered by auto insurance and demonstrate what a person should do after being involved in or a witness to an auto accident.
Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to explain what is covered by auto insurance and demonstrate what to do and not do should they are ever involved in or a witness to an auto accident.
©2014 National Endowment for Financial Planning | Lesson 6-4: Auto Accidents Happen
©2014 National Endowment for Financial Education |

6. High School Financial Planning Program
Lesson 6-4: Auto Accidents Happen
What is Covered
Medical costs due to physical injuries
Costs if found at fault for injuries to non-policyholder(s)*
Medical payments of policyholder(s)
Damage to other property
Costs if found at fault to property damage of non-policy holder(s)*
Damage to the vehicle
Colliding with another object
Repairs due to damage other than collision (aka comprehensive coverage)
*Liability coverage required in all states
Student Guide, pages 26-27
Clarify what is and what isn’t covered by auto insurance. Point out that, in general, auto insurance is available to reimburse for financial losses related to three types of mishaps:
medical costs due to physical injuries
damage to other property
damage to the vehicle
Point out that auto insurance coverage will vary for policyholders because of the choices they selected when purchasing insurance, but many states have required minimum coverage limits. Share any coverage requirements for your specific state.
Arrange for students to study pages for more detail on what is covered and not covered by auto insurance as they work in pairs or individually to complete Task: Match Auto Insurance Coverage. Review answers as a whole class.
Remind students that in every case, any deductible will be applied first to the cost of damages. Point out the value of planning to set aside emergency reserve savings funds to cover any out-of-pocket costs that might not be covered by auto insurance.
As time allows, complete Activity 6.6: Auto Insurance Coverage to scan a declarations page of an auto insurance policy so students become familiar with language and coverage descriptors. A sample is provided for an in-class activity, or ask an insurance agent to provide a sample or encourage students to scan a family auto insurance policy without reporting any details to the class.
©2014 National Endowment for Financial Planning | Lesson 6-4: Auto Accidents Happen
©2014 National Endowment for Financial Education |

7. There’s Been an Accident. Now What?
High School Financial Planning Program
Lesson 6-4: Auto Accidents Happen
There’s Been an Accident. Now What?
Do …
Remain calm
Seek medical attention
File police report
Stick to the facts
Contact insurance agent
Share contact and insurance information
Document details; take photos
Keep records for future reference
Avoid …
Leaving the scene
Sharing too much
Signing anything
Lying
Falsifying claims
Student Guide, page 30
Ask if anyone is willing to briefly describe an experience about being involved with or a witness to an auto accident. Ask what was learned by the experience that may be helpful to their classmates.
(Slide 6 and page 30) Examine the In Case of Accident checklist to point out what to do and not do after an auto accident. If any of the students have completed a drivers’ education course, ask them to share what they recall learning about dealing with and reporting auto accidents. Share any state-specific information such as accident reporting requirements or recommendations, requirements about having proof of insurance in the vehicle or any weather-related driving advisory restrictions.
Arrange for students to perform some or all roleplay scenarios described in Activity 6.7: Whoops! There’s Been an Accident. Guide the actors to apply what they have learned as they demonstrate the best course of action to take immediately after being involved in or witness to an automobile-related accident. Prompt the audience to provide feedback on what was observed. As an alternative, arrange for students to work in pairs to create simple storyboard drawings that illustrate reasonable action based on any of the scenarios.
©2014 National Endowment for Financial Planning | Lesson 6-4: Auto Accidents Happen
©2014 National Endowment for Financial Education |

8. High School Financial Planning Program
Lesson 6-4: Auto Accidents Happen
Reflection
If you have ever been involved in or a witness to a vehicle accident, what do you think you handled well? What do you wish you had done differently and why?
What do you think are the three most essential things to do or not do when involved in a vehicle accident and why?
What do you think are the two most essential things to do or not do if ever a witness to a vehicle accident and why?
As time allows, ask students to independently think-write silently, discuss in pairs or share with the whole group their responses to the following questions:
If you have ever been involved in or a witness to a vehicle accident, what do you think you handled well? What do you wish you had done differently and why?
What do you think are the three most essential things to do or not do when involved in a vehicle accident and why?
What do you think are the two most essential things to do or not do if ever a witness to a vehicle accident and why?
[Optional if a guest speaker presented this lesson] What is something interesting or surprising that you heard from the guest presenter? What additional questions do you have about dealing with vehicle accidents and insurance claims?
©2014 National Endowment for Financial Planning | Lesson 6-4: Auto Accidents Happen
©2014 National Endowment for Financial Education |

9. High School Financial Planning Program
Lesson 6-4: Auto Accidents Happen
Challenge
Auto Accident Prep Plan
Outline an action plan to use as a guide should you ever be involved in an auto accident.
Create a checklist of helpful information, supplies and equipment to quickly access if ever involved in an automobile mishap.
Distribute the Auto Accident Prep Plan Challenge. Preview the directions and scoring criteria to prompt students for the challenge.
Outline an action plan to follow should you ever be involved in an auto accident.
Create a checklist of helpful information, supplies and equipment to quickly access if ever involved in an automobile mishap.
©2014 National Endowment for Financial Planning | Lesson 6-4: Auto Accidents Happen
©2014 National Endowment for Financial Education |

10. High School Financial Planning Program
Lesson 6-4: Auto Accidents Happen
©2014 National Endowment for Financial Education |