1. UNINSURED MOTORIST How this coverage works and what a new law will mean to you. ? ?

2. Disclaimer This slide presentation is only valid when used in conjunction with a speaker’s presentation.

3. What is the coverage now? When someone causes a loss to you or your vehicle that driver is legally responsible to pay for your damages. Sometimes, those responsible parties are not so responsible and don’t carry insurance. When the at-fault party doesn’t have any insurance coverage, that is when your Uninsured Motorist coverage steps in.

4. Requirements for the coverage to be activated. First, you must select the coverage and pay the premium The other party must be at fault The other party cannot have any, or enough, insurance. There must be damage to you or your vehicle

5. What is covered? If purchased, coverage applies to damage to your property Coverage will apply for your bodily injury Coverage applies to members of your household If the other driver is truly uninsured, your coverage applies to passengers in your vehicle

6. Can UM Coverage apply when the other party has coverage? Yes! Sometimes the damages are greater than the amount of coverage the wrongful party has. When that happens, and if you have more than one policy, your UM coverage would apply from the other policies.

7. SOME COVERAGE WILL SOON CHANGE!!! Caution!

8. Senate Bill 276—effective Jan. 1, 2009 Creates another option for UM coverage – Unless you change the coverage back to what you currently have, you will get the new coverage! – There will be a premium difference – Your company will notify you, so you can select the coverage you want

9. How it works. You must still purchase the coverage The other party still has to be at fault; but The new coverage allows you to collect from your policy (up to the limit you purchase) regardless of the amount of coverage the wrongful party has

10. Here is a scenario You are traveling through an intersection with the green light. Another vehicle runs the light and hits your vehicle broadside. Your injuries are severe and you incur more than $50,000 in medical bills. The wrongful party has liability coverage in the amount of $25,000 (the state minimum). You have one vehicle with $25,000 UM coverage.

11. How the UM Coverage works You would be able to collect the $25,000 from the liability coverage from the at fault party. If you purchase the new UM coverage you would also be able to collect the $25,000 from your policy. If you didn’t purchase the new coverage you would not be able to collect any UM from your policy.

12. What do I do? If you have UM now, your company will give you notice of the options at least 45 days before the next renewal of your policy. If you do not want the new coverage, you must let your company know. The new coverage and premium will show up at the first renewal after Jan. 1, 2009. If you have decided not have UM coverage on your policy, nothing will change.

13. Auto Policy Renewal Reminder! Pay attention to your auto policy renewal notices for 2009, and make sure to let your auto insurer know what you want for uninsured motorist coverage. Watch for your 45-day notice from your insurer about the 2009 coverage change options.