Automobile Insurance: Coverage Types

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Automobile Insurance Coverage Types
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Time to Pick a Car and Get on the Road
Automobile Insurance Coverage Types

• Closest to the MSRP
• (Manufacturers Suggested Retail Price)
• Without going over wins!

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2005 Honda Civic LX

• Automatic Transmission
• Dual Zone Air Conditioner
• Keyless Entry
• Auto Lock Brakes

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The MSRP is

• 16,975

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2005 Mitsubishi Spyder GT

• Automatic, 4-Spd w/Overdrive Sportronic
• V6, 3.0 Liter
• Leather Interior

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The MSRP is

• 28,944

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2005 Hummer H2 SUV

• 7-Spoke Aluminum
• Automatic, 4-Spd HD
• Leather Surfaced Heated Bucket Seats
• V8, 6.0 Liter Engine

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The MSRP is

• 53,280

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Are You Ready to Drive?

• Ask yourself
• Do I have a license?
• Is my car registered?
• Am I covered by auto insurance?

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Why do I need auto insurance

• Its the law!
• There are risks you cant afford to take
• What happens if
• Youre involved in a crash that causes property
  damage?
• You hurt yourself or someone else?
• Your car is damaged when youre not driving it?
  (by weather, vandalism or a hit-and-run)
• Your car is stolen?
• Your car breaks down and needs to be towed?

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Types of Automobile Insurance Coverages

• Three Questions
• What are third-party coverages?
• What are first-party injury coverages?
• 3. What are first-party property coverages?

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Types of Automobile Insurance Coverages
What are third-party coverages? Bodily Injury
Liability People costs (medical expenses, lost
wages, pain and suffering) Property Damage
Liability Things (other cars and property) Both
are types of coverage required by law in most
states
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Types of Automobile Insurance Coverages
What are first-party injury coverages? Medical
Payments (MedPay) Covers medical and funeral
expenses resulting from accidents with your
vehicle Personal Injury Protection
(PIP) Extends MedPay to include lost
wages Uninsured Motorists Covers expenses if
the at fault driver does not have
coverage Underinsured Motorists Covers expenses
when the at fault driver does not have enough
coverage
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Types of Automobile Insurance Coverages
What are first-party property coverages? Comprehe
nsive Compensates you for physical damage to
your car, including theft, vandalism, natural
disasters Collision Pays for damage to your
vehicle in case of collision Both Coverages
require you to pay a deductible
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What is a Deductible?
This is the amount per accident that you pay out
of pocket before insurance starts to pay Common
deductible amounts are usually 250, 500, and
1000 The higher the deductible amount you pay
the lower your premiums are
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Types of Automobile Insurance Coverages

• Review
• What are third-party coverages?
• What are first-party injury coverages?
• 3. What are first-party property coverages?

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Now You Decide

• Choose a Car (of the 3 shown)
• Define Insurance Terms
• Select Type(s) of Insurance
• Explain your choices (why or why not)