1. 5.4 AUTO INSURANCE

2. Insurance is a contract between the driver and insurance company.  Liable: responsible.  Claim: a request for money  Premium: the fee for insurance  Surcharge: extra fee  Deductible: amount you pay before insurance pays VOCABULARY

3. 1.Liability: covers the other car & people. Bodily Injury (BI): covers bodily injury.  Your fault? You are responsible for paying the medical expenses of anyone injured. Property Damage (PD): covers damage to other peoples’ property.  Examples: another car, flower bed, fence, telephone pole, etc. TYPES OF AUTO INSURANCE

4. 2.Uninsured/underinsu red Motorist Protection (UMP)  Covers you and your passengers caused by a driver who has no insurance or not enough insurance. TYPES OF INSURANCE

5. 3.Personal Injury Protection (PIP)  Pays for physical injuries to you or your passengers regardless of who is at fault. 4.Comprehensive Insurance  Covers the repair or replacement of parts of your car damaged by vandalism, fire, flood, wind, earthquakes, riots, hail, trees, and other disasters. 5.Collision Insurance  Pays you for the repair or replacement of your car if it’s damaged in a crash with another car or object, no matter who is at fault. TYPES OF AUTO INSURANCE

6. 6.Car Rental Insurance  Pays you for part of the cost of a rented car if your car is disabled bcs of a crash 7.Emergency Road Service Insurance  Pays for towing or road service when your car breaks down. Gas, oil, parts, and labor are not covered. TYPES OF INSURANCE

8. Insurance limits – the maximum amount that the insurance company will pay per accident Listed as 50/100  The 1st number is the amount they’ll pay per person (per accident)  The 2 nd number is the total amount they’ll pay for the accident Sometimes listed as 50/100/50  The 3 rd number is amount for property damage You can set your limits in your insurance contract. Higher limits = higher premiums LIMITS