InsuranceConsumer EdUnit

Risk Areas

Property-items owned

Personal-bodily injury

Liability-anyone getting hurt by you

Auto Insurance Coverage

Collision Coverage-pays for the repair or replacement of your own vehicle after a traffic accident

30% of your bill

Auto Insurance Coverage

Comprehensive –protects your own vehicle against risks unrelated to traffic accidents, such as fire, hail, theft, and or vandalism.

12% of your bill

Auto Insurance Coverage

Liability Coverage-steps in when a covered drive causes injury or dame to other people or their property.

40-50% of your bill

Types- Bodily Injury-covers expenses related to injuries

suffered by others Property Damage-covers damage to items not vehicles Medical Payments-coverage of medical costs

Auto Insurance Coverage

Uninsured motorist-reimburses you bodily injury in accidents caused by uninsured drivers

Towing and Labor-the towing of vehicle if disabled or in an accident

Rental Reimbursement-gets you a car to use while yours is being fixed due to an accident

Insurance Rates for Factors

Age-under 25 more expensive

Gender-males pay more

Marital Status-married are better

Driving Record-safe, no tickets

Type and age of Vehicle

Vehicle Usage

Place of Residence

Vehicle Insurance Rate Discounts

Good Grades

Multi-policies with same company

Good Driver

Anti-theft measures

Defensive Driver Courses

College Graduates

Scene of an Accident

Call Police/911

Pull over and out of traffic

Exchange names, phone numbers, and insurance company information

Do not issue blame

Stick to the facts when asked by police

Special Type of Insurance

No-fault-does not assign blame for an accident

Each person pays for their own repairs.

Home Insurance

Covers the home and its contents in case of a natural or man made disaster.

All items owned by family members except vehicles whether at home or away.

80% rule-insure the value of the home and contents up to 80% of the cost of the replacements

Exclusions

Flood

Building Ordinance

Earthquake

Power Failure

Hurricane

Neglect

Volcano

War

Factors of Home Insurance Rates

Age of the Home

Local Firefighting capabilities

Construction materials

Size of the home

Home Insurance Rate Discounts

Increase deductible

Upgrade wiring or plumbing

Security System

Multiple Policies with same company

Home Insurance Specialties

Household inventory-detail list of items that are owned (video tape contents)

Renter’s Insurance-covers the contents of your space not the place itself.

Umbrella Policy-can be added to a the policy to protect the homeowners’ liability

Replacement vs. Cash Value Replaces-gives you a brand new item Cash Value-gives you what the items is currently worth

Life Insurance

Reason for is to protect the ones who are left in case of a death

Rule should be insured for 5 x’s your salary

Beneficiary is the person who gets the $$ from the life insurance policy.

Types of Life Insurance

Term-a policy that only covers the event of death

Prime Candidate-young families

Pro-cheap, covers for a specific time period, it is renewable, can convert to whole life

Con-not an investment

Whole-a policy that covers death and is an investment

Prime Candidate-financial well off

Pros-can be cashed in, investment

Cons-expensive

Factors to Life Insurance Rates

Age

Gender

Health

Smoker/Non-smoker

Occupation

Family History

Health Insurance Basic Coverage

Hospitalization

Surgery

Outpatient

Major Medical

Additional Coverage-prescriptions, vision, and dental

Types of Insurance Plans

PPO-Preferred Provider Organization-is a plan that as long as you go to Dr’s on the list it is covered

HMO-Health Maintenance Organization-is a plan that selects the Dr’s and controls who you visit

POS-Point of Service –is a plan that requires a primary Dr, but can be referred else where and is covered if necessary

Government Sponsored

Medicare-medical insurance for retired workers

Medicaid-cannot afford any insurance coverage

Worker’s Compensation-if hurt on the job it will be covered by this-employer pays for

COBRA

Consolidated Omnibus Budget Reconciliation Act

Covers workers for one job til the next up to 18 mos.

Former employee must pay for the coverage