AUTO INSURANCE

INSURANCE= GUARDS AGAINST BIG LOSSES.

AUTO INSURANCE: Types of Coverage

1. Liability or Casualty= Damage is your fault. Your company pays.

2. No-Fault Insurance= Each driver’s co. pays for expenses of it’s own customer. Saves time, lawsuits

3. Medical Coverage= Pays medical for you and others riding in your car

AUTO INSURANCE:

4. Collision= Pays for repair on your car no matter who is at fault when your vehicle is damaged by another vehicle or by an object.

Deductible clause, you pay for deductible, the higher the deductible the lower the cost. (deductible is an amount you agree to pay first and the insurance co. will pay the rest)

5. Comprehensive= Protects against damage to your car. Against theft, fire and natural disasters.

Coverage Examples

Collision covers damage to the policyholder's car resulting from running into anything, dent your fender backing out of the garage, hit a tree, a mailbox, another car, a trash can, a fire hydrant, a light post.

Comprehensive coverage takes care of your car in the case of theft, fire, falling objects, explosion, earthquake, flood, riot, an animal, hubcaps stolen, car is stolen

AUTO INSURANCE: Types of Coverage

6. Uninsured Motorist=Applies when injuries occur caused by an uninsured operator or by a hit and run accident. Covers damages to the injured person up to the limits set by your state.

INSURING YOUR CAR

IT’S THE LAW!!!!! State law requires you to carry auto insurance not to protect your car or yourself BUT to protect others.

Minimum in IL. 20/40/15

Required to carry property damage liability insurance (hit another car or fence) and bodily injury liability insurance (pedestrian or passenger in another car)

AUTO INSURANCERequired Coverage:

. Bodily Injury Liability=Applies when your vehicle injures or kills another person in an accident. Protects you and your family and covers legal fees and damages up to the limits stated in your policy.

Property Damage Liability= Applies when your vehicle damages the property of another person. Also protects and covers just as bodily injury does.

INSURING YOUR CARBODILY INJURY COVERAGE

Ex. 50/100/50First Number-Maximum amount in thousands ofdollars insurance will pay for one person in oneaccident.Second Number-Maximum amount inthousands of dollars that the insurance company will pay for all injured parties in anyone accident.Third Number- Amount in thousands that the insurance co. will pay for in property damage.

INSURANCE

Premium=The amount each person pays for insurance. It is paid monthly, quarterly, or in a variety of payment combinations.

Claim=The money paid to insured people by insurance companies to cover losses.

Auto insurance co. group drivers by age. Insurance co. charge more for young drivers since they payout more claims. (ex. boys 17-25 yrs.)