Lines of Insurance

1
Lines of Insurance

• What They Are and Why They Are Important
• Created by The Texas Department of Insurance

2
Major Lines of Personal Insurance

• Auto
• Health
• Life
• Homeowners

3
Auto Insurance

• If you drive a car in Texas, you must have the
  legal minimum amount of auto liability insurance.
• By law, you must have at least auto liability
  insurance.
• Liability means obligation. If you are in an
  accident, liability insurance will pay for
  injured parties and properties.
• It will NOT cover your injuries! You will need to
  buy more insurance than the legal minimum to
  cover (insure) yourself and your property.

4
Auto Insurance

• Auto insurance is mandatory in Texas. You will
  have to show proof of current insurance when you
• Get pulled over by the police.
• Get your car inspected.
• Renew your drivers license.
• Apply for or renew the registration for your car.

5
Auto Insurance

• Texas has a statewide database called TexasSure.
• If you are pulled over, a police officer can
  easily check to see if you have valid insurance
  for your car. If you are caught without
  insurance, you can be fined hundreds of dollars
  and possibly lose your license.
• Bottom line If you drive,
• you must have car insurance!

6
Health Insurance

• Health insurance is important because you never
  know when you might get sick or injured! Even
  minor injuries or illnesses can cost thousands of
  dollars to treat.
• Many plans will allow you to remain on your
  parents plan until you reach the age of 25 (so
  long as your parents choose to keep you on the
  plan).
• If you go to college or start working, it is a
• good idea to have health insurance.

7
Health Insurance

• If you are not on your parents plan,
• you may be able to get health
• insurance from
• Your college (many offer student
• health insurance plans)
• Your employer (many employers offer
• their employees health insurance plans)
• Organizations (some organizations offer group
  health insurance plans)
• Private carriers (remember to shop around to get
  the best price possible)

8
Life Insurance

• Life insurance helps make sure a family has
  enough money if a primary wage earner dies.
• It is important to have life insurance if you
  have family members or other people who depend on
  you for money.
• When you buy life insurance, you decide who your
  beneficiaries will be.
• Beneficiaries are the people the insurance money
  will go to when the person covered by the policy
  dies.

9
Homeowners Insurance

• When you buy a house, keep in mind that insurance
  is an expense in buying that house. Your lender
  will require that you have homeowners insurance.
• Homeowners insurance wont cover everything.
• You will need to evaluate your situation and
  decide if you need additional coverage, such as
  flood insurance, windstorm insurance, earthquake
  insurance, etc.

10
Homeowners Insurance

• Homeowners insurance also covers your personal
  property, such as furniture and clothing, and
  will pay for injuries to other people that occur
  at your house.
• The amount of coverage depends on your policy, so
  make sure to buy the coverage you want and need!
• If you rent instead of own your home, you will
  want to get renters insurance. Renters insurance
  covers your personal property if your rented home
  is damaged or if you property is stolen.

11
Other Lines of Insurance

• Pet
• Commercial (coverage for Businesses)
• Title (for real estate)
• Jewelry
• Boat

12
Remember!

• Companies charge different rates, even for
  similar coverages. It pays to shop around!
• Having insurance does not get you off the hook!
  You may still be liable (responsible) for paying
  for damage or replacements.
• Insurance costs money and requires financial
  responsibility!