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Auto insurance narrated show
 

Auto insurance narrated show

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My personal finance teacher's powerpoint which wont play with audio on my computer but hopefully will on here >.>

My personal finance teacher's powerpoint which wont play with audio on my computer but hopefully will on here >.>

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    Auto insurance narrated show Auto insurance narrated show Presentation Transcript

    • Automobile Insurance: The Basics
    • Automobile Insurance: The Basics What is the likelihood you will be in an automobile accident?There are more than 12 million motor vehicle accidentsannuallyThe typical driver will have a near automobile accident one ortwo times per monthThe typical driver will be in a collision of some type on averageof every 6 yearsCrashes are the leading cause of death for ages 3-33
    • Automobile Insurance: The BasicsEven a minor accident can result in thousands ofdollars in damages•Damage to your car•Damage to other cars involved•Medical Bills•Lost wages•Pain and suffering•Prosecution•Legal Fees•Fines
    • Automobile Insurance: The Basics What is Automobile Insurance?An auto insurance policy is a contract between youand an insurance company.You pay a premium, and in exchange, the insurancecompany promises to pay for specific car-relatedfinancial losses during the term of the policy.
    • Automobile Insurance: The BasicsIf you are in an accident how do you pay for it?Bank Account?Parents?Rich Uncle?Best Friend?Insurance?
    • Why do I need auto insurance• It’s the law!• There are risks you can’t afford to take• What happens if… – You’re involved in a crash that causes property damage? – You hurt yourself or someone else? – Your car is damaged when you’re not driving it? (by weather, vandalism or a hit-and-run) – Your car is stolen? – Your car breaks down and needs to be towed?
    • Automobile Insurance: The Basics Are you a risk to the insurance company?To keep premiums as low as possible to the insured,a screening process is completed before aninsurance contract is completed
    • Automobile Insurance: The Basics What is the insurance company looking for?Some vehicles, and some drivers, carry more riskthan others•Low risks will be charged a lower premium•High risks will be charged a higher premium
    • Automobile Insurance: The BasicsWhat determines your premium? Age Gender Vehicle Type Driving Record Geographic Location
    • What is a Deductible?This is the amount per accident that you pay out of pocket before insurance starts to payCommon deductible amounts are usually $250, $500, and $1000The higher the deductible amount you pay the lower your premiums are
    • Automobile Insurance: The PolicyA common mistake when shopping forautomobile insurance is looking only at theprice between two policiesPolicies differ from policy to policy andcompany to company
    • Automobile Insurance: The Policy Five parts to an insurance policyDeclarations: Summarizes the policy.Coverages: Listing of what the insurance covers – the more it covers,the more it will cost.Exclusions: Instances when your policy won’t provide coverage.Conditions: The manner in which the contract is valid. Such as inorder for the policy/contract to be maintained the car must be in roadworthy condition or the contract is breached.Definitions: Each policy defines what your coverage entails. This canvary policy to policy.
    • Automobile Insurance: The BasicsWhat can you do to reduce risk and lower premiums?Use your seatbelt Be PatientObserve Speed Limits Don’t Drink and DriveKnow your own limits Get good gradesConcentrate on driving
    • KEY TERMS• Bodily Injury Liability: In auto • Medical Payments: Auto insurance, liability coverage that insurance coverage can help to pays for physical injury to people provide medical payment for in other vehicles treatment of bodily injury.• Collision: The act or process of • Peril: A cause of loss colliding; a crash or conflict. • Policyholder: The owner of an• Comprehensive Coverage: insurance policy Insurance designed to pay for the repair or replacement of the policy • Premium: Payment made by the owners car in the event of insured to the insurer damage not resulting from an accident.
    • KEY TERMS• Insurance Policy: A contract written to protect individuals • Risk: A situation in which some named in the policy against kind of loss is possible specific future losses • Deductible: The amount the• Insured: An individual, usually but insured pays on a claim before the not always the buyer, covered by insurer pays the remainder an insurance policy • Coverage: Coverage against a• Insurer: The company or agency specific type of loss that writes an insurance policy • Replacement Cost: What it would• Liability: Legal responsibility cost to replace a piece of property,. or rebuild a structure