1. Auto Insurance http://www.youtube.com/watch?v=UB3oEHzakOw

2. Automobile Insurance  Why do we need it? Auto crashes - leading cause of death Teens account for 20% of all accidents Economic Cost - $150 billion/year  It’s required! Liability insurance required in most states Risk Management $$$

3. Property Damage Liability Covers damage that you cause to other people’s property as a result operating a motor vehicle Required by law

4. Bodily Injury Liability Injury that you cause to other people as a result operating a motor vehicle. Required by law

5. Collision Protects against damage to YOUR vehicle due to a traffic accident and its YOUR fault. Not required by states, BUT required by your lender! Insurance will only pay for damages up to current value of your car  TOTAL LOSS

6. Medical Payments Covers injuries to you or your passengers due to a traffic accident regardless of who is at fault.

7. Comprehensive Protects against loss to your vehicle (physical damage) due to non-collision causes:  Theft  Vandalism  Fire  Hail Damage

8. Uninsured / Underinsured Covers injuries to you, your family or passengers or damages to your car when in an accident caused by an uninsured or underinsured driver

9. CoverageWho’s faultWhat’s covered Bodily Injury Liability YOURSThe other PEOPLE Property Damage Liability YOURSThe other CAR/PROPERTY Medical PaymentsDoesn’t matter You and those in your car Uninsured/ Underinsured motorist THEIRSCompensates for anything the other drive was supposed to be responsible for ComprehensiveNature, theft, vandalism Your car CollisionYOURSYour car

10. What affects insurance rates?  Higher deductibles = Lower Premium You take on more of the risk  Older cars: Can you drop those Collision and Comprehensive Coverages – assess the risk!  Multi-car Discounts  Increase amount of coverage

11. What affects insurance rates?  Marital Status: Singles pay more  Grades: Good Grades= Lower Premiums  Driving Record Many accidents = Higher Premium  Sport cars= Higher rates Color not a factor  Age: Older drivers (over 25) get better rates  Residence/Commute- city or suburbs, distance

12. Who Pays the Most? UNMARRIED MALE DRIVERS, AGES 16-25

13. How can you lower?  Be a responsible driver  Drive a moderately priced car Discounts for certain safety features  Good grades  Live in safe neighborhoods  Increase the size of your deductible  Live responsibly

14. What to Do in Case of an Accident Get to a safe place, be careful getting out Check for injuries. Do not move anyone! Call 911 Exchange info with other driver. Ask for a copy of the police report and report to your insurance company

15. Other Tips  Stay Calm  Do Not admit guilt  Do Not reveal how much coverage your have  Take pictures  Do Not accept cash http://www.youtube.com/watch?v=78fJFbO81DY

16. Split Limits 50 / 150 / 75 1#- Bodily injury caused to one person 2# Bodily injuries caused to everyone 3# Total amount of property damage