1. Auto Insurance Note Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann. I highly recommend this book.

2. Auto Insurance Policy Categories 1.Liability Coverage (injury and property) 2.Medical Payments (for you) 3.Collision and Comprehensive (your vehicle) 4.Uninsured/Under-insured

3. Auto: Liability Insurance Covers 1.Lawsuits: suability factor is important – pays for your defense – legal judgments – Lost wages – Pain and suffering 2.Medical Expenses

4. Auto Split Limit Liability Insurance Example 1Example 2Example 3 Injury limit per person $50,000$100,000$250,000 Injury limit per accident $100,000$300,000$500,000 Property damage limit per accident $25,000$50,000$100,000

5. Who you hit matters!

6. Auto: Liability Example You hit a ____ who is hurt, misses one year of work TeacherPro Athlete Lost Wages$50,000$2,000,000 Pain and Suffering$150,000$1,000,000 Medical Expenses$100,000 Total Claim$300,000$3,100,000

7. So, if you have a high suability factor...... consider buying an Umbrella Policy (discussed in another clip)

8. Auto: Medical Payments for You Insuring Your Personal Injuries Bottom line: Medical and Disability should be covered using other medical and disability insurance, not auto insurance SO Buy what the law requires

9. Collision and Comprehensive Insuring Against Damage to Your Vehicle Collision: covers damage caused from colliding with another object (often another vehicle), regardless of fault Comprehensive: other accidental damage such as fire, theft, vandalism, glass breakage, hail.

10. Collision and Comprehensive, cont’d Both require a deductible General rule: Embrace as large of a deductible as you can financially and emotionally handle

11. Determining Your Deductible, Example Using Collision Insurance, 4 Year Payback Choice 1Choice 2 Deductible$200$1,000 Additional Risk$750NA Annual Premium$500$300 Payback4 years ($1,000-$200)/($500-$300)

12. When Should You Drop Collision and Comprehensive? Use the same logic as determining your deductible Cannot drop if you have a loan on the vehicle

13. Example: Dropping Collision and Comprehensive Old Chevrolet Value today$3,300 Salvage Value, if in an accident$200 Deductible$300 Additional Risk you are assuming if you eliminate collision and compr. insurance $2,800 Annual Premium for Collision and Comp.$700 Payback Period4 years ($2,800/$700)

14. Uninsured and Under-Insured Motorist Treat this like liability insurance you buy for the person who hits you who doesn’t have insurance or doesn’t have enough insurance or hits you and runs. Logically, you should buy as much uninsured/under-insured coverage as you buy liability insurance.

15. Saving Money on Car Insurance Buy a safe vehicle- test crash results www.iihs.orgwww.iihs.org Choose high collision and compr. Deductibles Keep a clean driving record Maintain a high credit score Insure your car and home with the same company Don’t submit small claims on property damage Study– G.P.A of 3.0 or greater