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Post on 12-Jan-2015

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Introduction to car insurance for high school students. I am not an insurance agent. I am a high school teacher. Please contact me if you know that some of this information is terribly incorrect.

TRANSCRIPT

  • 1. 1 Car Insurance (about 178 slides)

2. How insurance works 2 You pay a little money 3. How insurance works 3 You pay a little money If you dont have an accident, the insurance company keeps your money 4. How insurance works 4 You pay a little money If you do have an accident, the insurance company pays a lot 5. How insurance works 5 You pay a little money They will pay up to the limit of your policy 6. How insurance works 6 You pay a little money If you purchased a $15,000 policy, they will pay up to $15,000 $15,000 7. How insurance works 7 You pay a little money If you purchased a $100,000 policy, they will pay up to $100,000 $100,000 8. How insurance works 8 The money you pay is called the premium 9. How insurance works 9 You might pay every month, or every three months, or every six months (you decide) 10. How insurance works 10 You might pay every month, or every three months, or every six months (you decide) (Paying ahead is a little cheaper) 11. How insurance works 11 You pay a premium If you dont have an accident, the insurance company keeps your premium 12. How insurance works 12 You pay a premium If you dont have an accident, the insurance company keeps your premium 504 months and counting 13. Car insurance is not one thing. It comes in pieces. You dont have to buy all the pieces. 13 14. Like going to the HomeTown buffet, when you buy car insurance, you dont have to buy everything 14 15. Car insurance has 7 parts 7 premiums 7 policy limits 15 16. You dont have to buy all 7 parts. 16 17. In California, only 2 parts are required by law. 17 18. 18 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance 19. 19 Required in California 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance 20. 20 What Liability is This is an example of baby talk. Some teenagers say, It really wasnt my fault. It was just an accident. 21. 21 What Liability is In the grown-up world we have the idea of negligence. You are negligent if you should have been more careful. Its your fault if you are negligent. Now you have to pay for what you did. Its your fault. Crying wont help. You are liable. 22. Two parts of car insurance are required by the state of California. 22 23. 23 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance 24. 24 Bodily Injury Liability Insurance You hurt another persons body. 25. 25 Bodily Injury Liability Insurance You will have to pay all their medical bills. 26. 26 Bodily Injury Liability Insurance You will have to pay all their medical bills or, if you have Bodily Injury Liability car insurance, the insurance company will pay (up to the limit of your policy). 27. 27 Bodily Injury Liability You hurt another persons body You have to pay for their injuries because it was your faultyou are liable For example, you drive into someone who is walking in a crosswalk and break their leg 28. Bodily Injury Liability 28 You need Bodily Injury Liability insurance to pay the cost of their medical bills, pain and suffering. 29. Bodily Injury Liability 29 You need Bodily Injury Liability insurance to pay the cost of their medical bills, pain and suffering. You paid a small premium Your insurance company will pay for their medical bills, pain and suffering (up to the limit of your policy) $15,000 30. Bodily Injury Liability 30 31. 31 Bodily Injury Liability Required by the state of California You must buy Bodily Injury Liability insurance You must buy at least $15,000 of BI in case you hurt one person in an accident You must also buy at least $30,000 of BI in case you hurt more than one person in an accident This is called 15/30 BI insurance 32. 32 Bodily Injury Liability What if you have $15,000 of Bodily Injury Liability insurance but the other persons medical bills come to $265,000? $265,000 damage $15,000 of bodily injury insurance 33. 33 Bodily Injury Liability What if you have $15,000 of Bodily Injury Liability insurance but the other persons medical bills come to $265,000? You pay the remaining $250,000. $265,000 damage $15,000 of bodily injury insurance $250,000 paid by you 34. 34 Bodily Injury Liability Perhaps your parents will have to sell their house to get the money to pay. $265,000 damage $15,000 of bodily injury insurance $250,000 paid by you 35. 35 Bodily Injury Liability Buy lots of Bodily Injury Liability insurance! $265,000 damage $265,000 of bodily injury insurance 36. 36 Bodily Injury Liability Are you covered by BI insurance? You smash into another car and the other drivers head is hurt 37. 37 Bodily Injury Liability Are you covered by BI insurance? You smash into another car and the other drivers head is hurt Yes, they are hurt and its your fault 38. 38 Bodily Injury Liability Are you covered by BI insurance? You hit a dog and break its leg 39. 39 Bodily Injury Liability Are you covered by BI insurance? You hit a dog and break its leg No, dogs are not people 40. 40 Bodily Injury Liability Are you covered by BI insurance? You skid off the road and crack your head on the drivers window 41. 41 Bodily Injury Liability Are you covered by BI insurance? You skid off the road and crack your head on the drivers window No, BI covers other people you hurt, not you 42. 42 Bodily Injury Liability Are you covered by BI insurance? You run into a telephone pole and your passenger, a friend of yours, gets a gash on their forearm. 43. 43 Bodily Injury Liability Are you covered by BI insurance? You run into a telephone pole and your passenger, a friend of yours, gets a gash on their forearm. Yes, they are hurt; its your fault. Note: if your passenger is a member of your household, they would probably NOT be covered by BI insurance. 44. 44 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance 45. 45 Property Damage Liability You damage another persons property. For example, their fence. 46. 46 Property Damage Liability You damage another persons property You have to pay for the damage because it was your faultyou are liable For example, you crash into someones car damaging their car. 47. 47 Property Damage Liability You need Property Damage Liability insurance to cover the cost of repairing or replacing their property. You paid a small premium Your insurance company will pay to repair or replace their property (up to the limit of your policy) $5,000 48. Property Damage Liability 48 49. 49 Property Damage Liability Required by the state of California You must buy Property Damage Liability insurance You must buy at least $5,000 of PD in case you damage another persons property 50. 50 Property Damage Liability What if you have $5,000 of Property Damage Liability insurance but the other persons car repair bills come to $15,000? $15,000 damage $5,000 of property damage insurance 51. 51 Property Damage Liability What if you have $5,000 of Property Damage Liability insurance but the other persons car repair bills come to $15,000? You pay the remaining $10,000 $15,000 damage $5,000 of property damage insurance $10,000 paid by you 52. 52 Property Damage Liability You pay the remaining $10,000 What if you dont have $10,000? $15,000 damage $5,000 of property damage insurance $10,000 paid by you 53. 53 Property Damage Liability You pay the remaining $10,000 What if you dont have $10,000? $15,000 damage $5,000 of property damage insurance $10,000 paid by you 54. 54 Property Damage Liability You pay the remaining $10,000 What if you dont have $10,000? $15,000 damage $5,000 of property damage insurance $10,000 paid by you Future wages garnished. 55. 55 Liability Insurance, in general Minimum required Bodily Injury Liability and Property Damage Liability is often referred to as: 15/30/5 insurance $15,000 for hurting one person in an accident $30,000 for hurting all the people in an accident $5,000 for Property Damage 56. 56 Property Damage Liability Are you covered by PD insurance? You skid off the road and crash into a wooden fence 57. 57 Property Damage Liability Are you covered by PD insurance? You skid off the road and crash into a wooden fence Yes, you damaged someone elses propertytheir fence. Your Property Damage Liability insurance will pay to repair the fence. 58. 58 Property Damage Liability Are you covered by PD insurance? You are driving under the speed limit. A dog runs into the street and you hit it. The dog is hurt. 59. 59 Property Damage Liability Are you covered by PD insurance? You are driving under the speed limit. A dog runs into the street and you hit it. The dog is hurt. No, you are not at fault. Dogs are required by law to be under the control of their owners at all times. You are not liable. You do not have to pay the medical bills for the dog. 60. 60 Property Damage Liability Are you covered by PD insurance? You crash into the car in front of you. No one is hurt. 61. 61 Property Damage Liability Are you covered by PD insurance? You crash into the car in front of you. No one is hurt. Yes, you damaged someone elses propertytheir car. Your Property Damage Liability insurance will pay to repair the o