Auto InsuranceKnowledge for a Lifetime

Car insurance can help: • Safeguard your investment in your automobile • Pay for medical expenses in case of an accident • Provide financial protection from lawsuits • Cover losses caused by uninsured or

underinsured drivers • Pay for damage due to theft, vandalism or

natural disasters

• YouTube - Allstate - Marina Towers 30-second Spot

Insurance…Knowledge for a Lifetime

$500

$600

$500

$300

$200

$1,000

oops!

Insurance helps to pay bills!

Insurance company takes money from the bowl…

…to help you you pay for bills!

Insurance

1. Protects you from monetary loss

2. Protects others when you’re at fault

Insurance terms

• Contract– An agreement

between you and your insurance company

• Claim– What you file

when you are in a collision

• Premium– What you pay for

your insurance• Face value

– The monetary amount covered by your policy

Types of Insurance

* Bodily-injury liability

* Uninsured motorist• Medical payment

* Property-damage liability• Collision• Comprehensive

* Required in Illinois

Bodily-injury liability

1. Required

2. Pays for others injuries when you are at fault

3. Minimum face value $20,000/40,000 – $20,000 maximum one

person may receive

– $40,000 maximum paid for the entire collision

• Covers court costs

Get this one

Property-damage liability

1. Required2. Covers repairs or replacement of public or

private property when you’re at fault– public: stop lights, guardrails, signs– private: car, mailbox, fence

3. Minimum $15,000 • Covers court costs

Property Damage Liability

Uninsured motorist

1. Covers you and your family’s bodily injury only– In a car or on foot

2. Covers you from being hit by an uninsured motorist or a hit and run

I hope he’s

insured

Medical payment insurance

1. Not required

2. Pays for your injuries when you are at fault

3. Pays for your passenger’s injuries when you’re at fault

• 16 year old driver• ‘92 Camaro ran into ‘99 Chrysler at 55 mph• Not wearing seatbelts!• Both driver and passenger were injured!

Collision

1. Covers repairing or replacing your car when you’re at fault

2. Has a deductible

3. Covers from hit and run and uninsured motorist

4. Not required

• If the owner wants to get his car repaired, he must first pay a __________________?DEDUCTIBLE

Comprehensive

1. Not Required2. Covers fixing your carcar if it is damaged by:

– Acts of nature– Vandalism– Theft– Riots

2. Has a deductible

DEDUCTIBLEDEDUCTIBLE

Definition: The deductible is what you pay before the insurance company pays

- The higher the deductible the lower the premium

– Example: Cost to repair your vehicle is $1,800

– Your deductible (what you pay) is $500

– How much does the insurance company pay?

$1,800

-$500

$1,300

The 2 types of insurances The 2 types of insurances that have that have

DEDUCTIBLES are…DEDUCTIBLES are…

You may buy

• Towing• Rental car

coverage

• Glass coverage

• If joe is uninsured, what insurance pays for jane’s injuries?

• Minimum $500 fine• Suspension of vehicle registration until fee is paid• Repeat offenders- 4 month suspension• $1000 minimum for driving a suspended vehicle

UNINSURED MOTORIST

If you hit an unattended vehicle

1. Look for the owner if possible

2. Leave a note with name, phone number and license plate #

3. Report to police

4. If you fail to report a crash you can be fined $2500 and jail up to 1 year

5. Leaving the scene, If you fail to report and accident with in 30 minutes. May be fined up to $25000 and a prison sentence of 1 – 3 years

Steps to take in case of a collision

• Stop in a safe place• Aid the injured• Warn other traffic • Send for help• Exchange information• Report to IDOT within 10 days

Mitsubishi Montero CrashConnecticut

Assigned risk program

1. Too many claims and/or tickets may get may get you droppedyou dropped

2. You may pay 3 times3 times as much for your coverage

3. You are on probation probation for 3 years. for 3 years. If you clean up your record in those 3 years your rates may drop

Hammered by 18 Wheeler TruckDurban, South Africa

Variables that will affect your premium

1. Address

2. Gender

3. Age

4. Grades

5. Type of vehicle driven– Year

– Model

– Horse power

6. Marital status

7. Miles driven

8. Occasional / primary driver

9. Prior Insurance Claims

10. Driving Record

Auto Skid CD

Can you get a discount on your insurance rate?

YES!!!!1. Good driver discount

2. Good student discount

3. Vehicle has certain safety features

4. Multiple insured vehicles

5. No claims or convictions

John’s premium is $700 every 6 months

X .20 good student discount

$140 savings every 6 months

$280 savings each year!

For your information!!License plates on front and

back

Modifications to your vehicle…

• Any modification done to your car must be reported to your insurance company: exhaust, engine, sound system

• Can not be able to hear music 75 ft away from car

• Items hanging on rearview mirror• Tinted windows- must be able to see inside

front and side windows

•No running lights (neon)

•No neon lights inside car

•Can’t wear headphones: one earpiece for a phone is okay

•No siren in the car

•No red lights visible in the front of the vehicle

•Can’t jack up the car one side higher than the other

INSURANCE TESTINSURANCE TEST

• 60 POINTS TOTAL

• 36 POINTS NEEDED TO PASS

• SHORT ANSWER

Insurance (2 points)

• Protects you from monetary loss

• Protects others when you’re at fault

What is a PREMIUM?

1 point

What you pay for insurance.

Types of Insurance

• Bodily-injury liability• Uninsured motorist• Medical payment• Property-damage

liability• Collision• Comprehensive

Insurance Insurance RequiredRequired in Illinois in Illinois(3 points)(3 points)

• PProperty Damage Liabilityroperty Damage Liability

• UUninsured Motorist ninsured Motorist

• BBodily Injury Liabilityodily Injury Liability

Bodily-injury liability(4 points)

1. Required

2. Pays for others injuries when you are at fault

3. Minimum face value $20,000/40,000

Get this one

Property-damage liability(4 points)

1. Required

2. Covers repairs or replacement of public or private property when you’re at fault

3. Minimum $15,000

Uninsured motorist(4 points)

1. Required

2. Covers you and your family’s bodily injury only

3. Covers you from being hit by an uninsured motorist or a hit and run

I hope he’s

insured

Medical payment insurance(4 points)

1. Not required

2. Pays for your injuries when you are at fault

3. Pays for your passenger’s injuries when you’re at fault

Collision(4 points)

1. Covers repairing or replacing your carcar when you’re at fault

2. Has a deductible

3. Covers from hit and run and uninsured motorist

Comprehensive(4 points)

1. Covers your car from:

- Acts of nature, Vandalism, Theft, Riots

2. Has a deductible

3. Not required

DEDUCTIBLEDEDUCTIBLE(1 point)(1 point)

–The deductible is what you pay before the insurance company pays

Insurance that Requires you to pay a Insurance that Requires you to pay a DEDUCTIBLE?DEDUCTIBLE?

(2 points)(2 points)

• COLLISION

• COMPREHENSIVE

Variables that will affect your premium (10 points)

1. Where you live

2. Gender

3. Age

4. Type of vehicle driven

5. Miles driven6. Academic Grades7. Marital status8. Occasional / primary

driver9. Prior Insurance Claims 10. Driving Record

Can you get a discount on your insurance rate?

(3 points)YES!!!!

1. Good driver2. Good student 3. Driver education

2 pointsBe able to determine a person’s premium with a

20% Good Student Discount$650X.20

$130 savings

Assigned risk program(3 points)

• Too many claims and/or tickets may get may get you droppedyou dropped

• You may pay 3 times3 times as much for your coverage

• You are on probation for 3 years. probation for 3 years. If you clean up your record in those 3 years your rates may drop

If you hit an unattended vehicle(3 points)

1. Look for the owner if possible

2. Leave a note with phone number

3. Report to police

Steps to take in case of a collision (6 points)

• Stop in a safe place• Aid the injured• Warn other traffic• Send for help if needed• Exchange information• Report to IDOT within

10 days