auto insurance 101 gene brooks. hypothetical facts sam adams is driving down abercorn st. another...
TRANSCRIPT
![Page 1: Auto Insurance 101 Gene Brooks. Hypothetical Facts Sam Adams is driving down Abercorn St. Another driver runs stop sign on cross street The two cars wreck](https://reader035.vdocuments.site/reader035/viewer/2022070401/56649f165503460f94c2c533/html5/thumbnails/1.jpg)
Auto Insurance 101
Gene Brooks
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Hypothetical Facts
• Sam Adams is driving down Abercorn St.
• Another driver runs stop sign on cross street
• The two cars wreck
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What to do?
• Sam Adams in car wreck. • Taken to hospital• Car is towed away• Other driver says, “Don’t worry, I’m fully
covered.”
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Insurance Coverages
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Insurance Coverages
• Liability• Collision (optional)• Comprehensive(optional)• Medical Payments Coverage (optional)• Uninsured/Underinsured Motorists (optional)
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Liability
• Only legally required coverage in Georgia• $25,000 minimum coverage-required– Provides legal representation– Bodily injury– Property damage
• Adam needs to find out about other driver’s coverage
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Collision Coverage
• Optional• Covers Sam’s car if damaged• Deductible $500• Ins. Co. option to repair or replace• Some policies provide temporary rental• Would apply if no driver “at fault”
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Comprehensive Coverage
• Applies to damage not covered by Collision coverage
• Deductible $100• Does not apply in Adam’s case
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Medical Payments Coverage
• Optional• Only for medical bills incurred in wreck• Many policies have $5,000 payment• No subrogation• But none in this policy
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Uninsured / UnderinsuredCoverage
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Underinsured / Underinsured
• UNINSURED = at fault party has no insurance
• UNDERINSURED = at fault party has insurance but your claim exceeds that insurance
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UM might apply
• If other ‘at fault’ driver is uninsured• If Sam’s losses are greater than amount of ‘at
fault’ driver’s insurance coverage• Sam’s insurance company steps into shoes of
‘at fault’ driver
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Stacking / Non-Stacking
• Amount of UM available depends on number of autos insured under your policy and insurance on vehicle you are riding in
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What happens
• Sam’s medical bills are $20,000 and his lost income is $10,000
• Other driver –underinsured• Sam places his UM company on notice• Claim denied• Sam files lawsuit against ‘at fault’ driver
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Auto Insurance 101
Gene Brooks