1. Vehicle Insurance Chapter 38

2. Economic Risks of Owning a Car Risks – Accident Damage to yourself Damage to your vehicle Damage to others Damage to others property – You can buy insurance to protect yourself from the financial loss caused by almost anything that could happen to your car.

3. Auto Liability Insurance Automobile Liability Insurance – this is the insurance that you can buy in order to protect yourself against financial loss if you injure someone else or damage someone else’s property. This will also cover your defense in a court hearing, to determine who is at fault in an automobile accident.

4. Types of Coverage Personal Injury Coverage – Bodily Injury Liability – Medical Payments – Uninsured Motorist Protection Property Damage Coverage – Property Damage Liability – Collision Insurance – Comprehensive Physical Damage

5. Personal Injury Coverage Bodily Injury Liability Protection – Protects the insured from claims resulting from injuries or deaths for which the insured is found to be at fault. – Covers people in other cars, passengers riding with the insured, and pedestrians. – It does not cover the insured or, in most cases, the insured’s immediate family This is normally expressed in a fraction… – 100/300 $100,000 of coverage for if just one person is hurt, while the 300 indicates $300,000 is the maximum amount which the company will pay for the accident altogether.

6. Personal Injury Coverage Medical Payments Protection – Policyholders and their family members are covered if they are injured while riding in their car or in someone else’s car. – This will also cover a pedestrian hit by a car. – Medical payments that are covered would be that of medical, dental, ambulance, hospital, nursing and funeral services.

7. Personal Injury Coverage Uninsured Motorist Protection – Protects against uninsured drivers or drivers who have no money to pay claims. – Also protects against damage caused by a hit-and-run accident – This is only used if the uninsured motorist is found to be at fault. – This will only be sold in a policy which does have bodily injury liability.

8. Personal Damage Coverage Property Damage Liability – – Protects the insured against claims if the insured’s car damages someone else’s property and the insured is at fault – This covers property such as another car, telephone poles, fire hydrants, and buildings – This does not cover the insured’s car

9. Personal Damage Coverage Collision Insurance – – Protects against a car owner against financial loss associated with damage resulting from a collision with another car or object or from the car turning over. – This type of insurance includes a deductible clause. – If the cost of a collision is more than the cost of the car, the company only pays the cost of the car.

10. Personal Damage Coverage Comprehensive Coverage – Protects the insured against almost all damage losses except those cause from a collision or from the car turning over. Fire, Tornado, Windstorm, Vandalism, Falling Objects, Hail, and Theft. – The estimated value of the car is what the insurance company would pay, in the event the car was totally destroyed or if the car was stolen.

11. Buying Automobile Insurance Insurance Rates – Some factors which are considered when figuring the cost of auto insurance… The purpose for which you drive your car. The number of miles you drive your car each year. The value and type of your car. The community in which you live in. Types of coverage and deductibles.

12. Vehicle Insurance Laws Compulsory Insurance Laws – This requires you to carry certain types of automobile insurance before your car can be licensed. – You can not register a car or get a license to drive without providing proof of having minimum amounts of insurance coverage required.

13. Vehicle Insurance Laws Financial Responsibility Laws – – This laws says that if you cause an accident, and you are unable to pay for the damages either through insurance, your savings, or the sale of property, your driver’s license will be suspended or taken away. Assigned Risk Plans – – Each insurance company in the state must sell liability insurance to a fair share of the high risk drivers. – This “fair share” is determined by the amount of insurance the company sells per year.

14. Vehicle Insurance Laws No-Fault Insurance Laws – – In an effort to speed up the payment of claims and reduce the hardship of long delays this law requires that you get compensated for your losses, from your own insurance company, no matter who is at fault.