Liability coverage – covers liability and expenses when you’re at fault in an accident Bodily...
-
Upload
thomasine-barber -
Category
Documents
-
view
219 -
download
0
Transcript of Liability coverage – covers liability and expenses when you’re at fault in an accident Bodily...
WARM-UP
Make a list of things that Auto Insurance covers.
• Liability coverage – covers liability and expenses when you’re at fault in an accident
• Bodily Injury Liability (BIL) – pays for the medical expenses of people who were injured in a crash that was at your fault
• Property Damage Liability - pays for damage done to the other car if you are at fault in an accident
• Personal Injury Protection (PIP) – covers you and your passengers’ medical expenses after an accident
• Uninsured/Underinsured Motorist Coverage – helps cover costs if you are hit by someone without insurance , or minimal coverage
• Collision – covers repairs to your car after an accident
• Comprehensive – covers coast if your car is stolen or damaged outside of an accident
Vehicle Insurance
Motor vehicle risks Owning a vehicle puts you in a position for high
economic risk
May damage other people or vehicles
all states have some kind of financial responsibility law
Your insurance will provide you with legal defense for the suit
Automobile insurance coverage
There are many types of auto insurance coverage
Usually pays $100,000 to $300,000 for personal injury coverage
Automobile insurance coverageThree types of property damage coverage:
• Property damage liability: protects a driver against claims if the insured’s car damages
someone else’s property and the insured is at fault.
• Collision coverage: protects the insured from financial loss at the event of a collision.
• Comprehensive coverage: protects from weather and theft.
Automobile insurance costs
Rates change by age and other characteristics like accident record ,
marital status, academic standing, and credit rating
Also change by type of car, how old it is, and how many miles a year you put on it
Percentage of fatal crashes by characteristic
Driver age 16 17-19 20-49
Driver error 80 75 62
Speeding 36 31 22
3+ occupants 33 26 19
Single vehicle 41 37 30
Drivers killed with 0.01 + BAC
8 25 47
Spotlight Company All State:
-Founded in 1931 Allstate is the second largest personal lines insurer in the United Stases. They created the your in good hands slogan in 1950 . Also in
the 1950’s, Allstate included fire and homeowners insurance.
Review What is property damage liability?
What are two motor vehicle risks?
What are two personal characteristics that influence insurance cost?
What characteristics of your vehicle influence your insurance cost?
What does collision coverage protect?
Vocabulary
Vocabulary Bodily injury liability-
Insurance that protects a driver from claims resulting from injuries or deaths for which the
insured is at fault.Property damage liability-
Insurance that protected a driver against claims if the insured’s car damages someone else
property and the insured is at fault.
VocabularyMedical payment coverage-
policy holders and family members are covered if they are injured while riding in their car of
another carCollision coverage-
insurance that protects a car owner against financial loss resulting from collision or
rollover
VocabularyDeductible-
capable of being deducted or taken away from a sum or amount.
Uninsured motorist coverage- to protect drivers through injuries, or hit and run
VocabularyComprehensive coverage-
protects the insured against almost all damage losses except those caused from a collision or
roll over
No-fault insurance- in an effort to reduce insurance costs and speed
up claim settlement