1. Vehicle Insurance Section 9-4

2. Who or What is Protected? / You / Your vehicle / Another person / Another’s property / You / Your vehicle / Another person / Another’s property

3. Liability Insurance / Insurance you buy to protect yourself against financial loss if you injure someone else or damage another's property.property. / Insurance you buy to protect yourself against financial loss if you injure someone else or damage another's property.property. 2 TYPES

4. 2 Types of Liability Coverage / Bodily Injury / Covers injuries and deaths where you are at fault / Does not cover family members / Required in PA / Policy Limit (Example 25/50/25) “Split limit”“Split limit”/”Combined Single Limit / Bodily Injury / Covers injuries and deaths where you are at fault / Does not cover family members / Required in PA / Policy Limit (Example 25/50/25) “Split limit”“Split limit”/”Combined Single Limit / Property Damage / Covers damage you do to someone else’s property _a_/ _b_ / _c_ A. Max for one person injured B. Max for all injuries in one accident C. Property damage one accident NOTE: stated in thousands

5. Policy Holder Coverages  Medical Payments  Covers your injuries or a family members while in another car or hit by a car.  Does not matter who is at fault; your insurance pays  PA is a NO FAULT state - Called “Basic First Party Benefits”; not Medical PaymentsNO FAULT  Uninsured/Underinsured Motorists  Cover you if you are injured by a motorist who is uninsured or underinsured (ex: hit-and-run driver)  Other driver must be at fault  Collision  Covers damage to your car resulting from a collision with another car or object or turning car over.  Deductible Clause - amount car owner is willing to pay up front for damages  Comprehensive  Covers all other damages to your car except those caused by a collision (ex: theft, fire, tornado)  Deductible Clause  Medical Payments  Covers your injuries or a family members while in another car or hit by a car.  Does not matter who is at fault; your insurance pays  PA is a NO FAULT state - Called “Basic First Party Benefits”; not Medical PaymentsNO FAULT  Uninsured/Underinsured Motorists  Cover you if you are injured by a motorist who is uninsured or underinsured (ex: hit-and-run driver)  Other driver must be at fault  Collision  Covers damage to your car resulting from a collision with another car or object or turning car over.  Deductible Clause - amount car owner is willing to pay up front for damages  Comprehensive  Covers all other damages to your car except those caused by a collision (ex: theft, fire, tornado)  Deductible Clause

6. Financial Responsibility Laws  Compulsory Insurance Law  Laws that require you to carry certain types of auto insurance before a car can be registered  Assigned-Risk Plan  Because of bad driving records, some drivers are unable to buy insurance, but every auto ins. Co. in the state that sells liability insurance is assigned a certain number of high-risk drivers.  No-Fault Insurance No-Fault Insurance  Reduce hardships of long and costly court proceedings so your insurance pays regardless of who is at fault  Compulsory Insurance Law  Laws that require you to carry certain types of auto insurance before a car can be registered  Assigned-Risk Plan  Because of bad driving records, some drivers are unable to buy insurance, but every auto ins. Co. in the state that sells liability insurance is assigned a certain number of high-risk drivers.  No-Fault Insurance No-Fault Insurance  Reduce hardships of long and costly court proceedings so your insurance pays regardless of who is at fault

7. Extra Information Lease Get “lease-gap coverage”: If you total your car the insurance will only pay the blue book value, but you may owe more. This coverage covers the “more” you owe. Limited and Full Tort To have insurance sue for pain and suffering Towing Installments Fees apply if you spread out your premiums

8. Summary CoverageProtects Bodily Injury Liability Injuries/deaths you cause to other people except family members Medical Payments Any injuries or deaths to you or your family members Uninsured/Underinsured Motorists Any injuries or property damage done to you Property Damage Liability Damage to other people’s property caused by you Collision Damage to your car Comprehensive Damage to your car

9. Factors Determining Cost Age Marital Status Auto itself Garaged? Coverages/Deductibles selected Grades/Driver’s Ed Credit Rating