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