1. Auto Insurance September 18,2014

2. Liability  legal term for responsibility

3. Bodily injury liability  protection against claims or lawsuits that are brought against you by  pedestrians  riders in your car  people in other cars  whose injuries were caused by an accident for which you are responsible. Protection varies from $10,000 to $1,000,000 or more.

4. Property Damage Liability  paid for the damage done to other people’s property  such as a car  a building  a fence  Amounts range from $5000 to $50000  protects you if and when you drive someone else’s vehicle.

5. Medical payments  Covers  person driving the car  others riding in it  whether nor not that driver is at fault

6. Collision  Coverage for collision pays for damage to the car if it is in an accident  Some people decline this coverage if their car is not worth much.

7. Comprehensive Physical  pays for damages that result from  a fire  falling objects  Theft  Flood  earthquake

8. Uninsured and Underinsured  pays for personal expenses due to an accident if it can be shown that the driver of the other car was at fault  if the other driver has little or no bodily injury liability coverage.

9. Cost of Insurance  Value of the car impacts the cost of insurance.

10. Driver Rating Factor  A chart based on characteristics  age  Sex  kind of driving done  other categories.

11.  P = premium  r = driver rating  b = basic rate

13.  p = premium  e = expense paid out  n = number paying premiums  o = overhead per premium

14. Subtract 25 Multiply by 1000

15. Subtract 30 Multiply by n Divide by 30