Car insurance

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Introduction to car insurance for high school students. I am not an insurance agent. I am a high school teacher. Please contact me if you know that some of this information is terribly incorrect.

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Car insurance

  1. 1. 1 Car Insurance (about 178 slides)
  2. 2. How insurance works 2 You pay a little money
  3. 3. How insurance works 3 You pay a little money If you don’t have an accident, the insurance company keeps your money
  4. 4. How insurance works 4 You pay a little money If you do have an accident, the insurance company pays a lot
  5. 5. How insurance works 5 You pay a little money They will pay up to the limit of your policy
  6. 6. How insurance works 6 You pay a little money If you purchased a $15,000 policy, they will pay up to $15,000 $15,000
  7. 7. How insurance works 7 You pay a little money If you purchased a $100,000 policy, they will pay up to $100,000 $100,000
  8. 8. How insurance works 8 The money you pay is called the “premium”
  9. 9. How insurance works 9 You might pay every month, or every three months, or every six months (you decide)
  10. 10. How insurance works 10 You might pay every month, or every three months, or every six months (you decide) (Paying ahead is a little cheaper)
  11. 11. How insurance works 11 You pay a premium If you don’t have an accident, the insurance company keeps your premium
  12. 12. How insurance works 12 You pay a premium If you don’t have an accident, the insurance company keeps your premium 504 months and counting
  13. 13. Car insurance is not one thing. It comes in pieces. You don’t have to buy all the pieces. 13
  14. 14. Like going to the HomeTown buffet, when you buy car insurance, you don’t have to buy everything 14
  15. 15. Car insurance has 7 parts 7 premiums 7 policy limits 15
  16. 16. You don’t have to buy all 7 parts. 16
  17. 17. In California, only 2 parts are required by law. 17
  18. 18. 18 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  19. 19. 19 Required in California 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  20. 20. 20 What Liability is – This is an example of baby talk. Some teenagers say, “It really wasn’t my fault. It was just an accident.”
  21. 21. 21 What Liability is • In the grown-up world we have the idea of negligence. • You are negligent if you should have been more careful. • It’s your fault if you are negligent. • Now you have to pay for what you did. It’s your fault. Crying won’t help. You are liable.
  22. 22. Two parts of car insurance are required by the state of California. 22
  23. 23. 23 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  24. 24. 24 Bodily Injury Liability Insurance You hurt another person’s body.
  25. 25. 25 Bodily Injury Liability Insurance You will have to pay all their medical bills.
  26. 26. 26 Bodily Injury Liability Insurance You will have to pay all their medical bills or, if you have Bodily Injury Liability car insurance, the insurance company will pay (up to the limit of your policy).
  27. 27. 27 Bodily Injury Liability • You hurt another person’s body • You have to pay for their injuries because it was your fault—you are “liable” For example, you drive into someone who is walking in a crosswalk and break their leg
  28. 28. Bodily Injury Liability 28 You need Bodily Injury Liability insurance to pay the cost of their medical bills, pain and suffering.
  29. 29. Bodily Injury Liability 29 You need Bodily Injury Liability insurance to pay the cost of their medical bills, pain and suffering. You paid a small premium Your insurance company will pay for their medical bills, pain and suffering (up to the limit of your policy) $15,000
  30. 30. Bodily Injury Liability 30
  31. 31. 31 Bodily Injury Liability • Required by the state of California • You must buy Bodily Injury Liability insurance – You must buy at least $15,000 of BI in case you hurt one person in an accident – You must also buy at least $30,000 of BI in case you hurt more than one person in an accident – This is called 15/30 BI insurance
  32. 32. 32 Bodily Injury Liability What if you have $15,000 of Bodily Injury Liability insurance but the other person’s medical bills come to $265,000? $265,000 damage $15,000 of bodily injury insurance
  33. 33. 33 Bodily Injury Liability What if you have $15,000 of Bodily Injury Liability insurance but the other person’s medical bills come to $265,000? You pay the remaining $250,000. $265,000 damage $15,000 of bodily injury insurance $250,000 paid by you
  34. 34. 34 Bodily Injury Liability Perhaps your parents will have to sell their house to get the money to pay. $265,000 damage $15,000 of bodily injury insurance $250,000 paid by you
  35. 35. 35 Bodily Injury Liability Buy lots of Bodily Injury Liability insurance! $265,000 damage $265,000 of bodily injury insurance
  36. 36. 36 Bodily Injury Liability • Are you covered by BI insurance? – You smash into another car and the other driver’s head is hurt
  37. 37. 37 Bodily Injury Liability • Are you covered by BI insurance? – You smash into another car and the other driver’s head is hurt Yes, they are hurt and it’s your fault
  38. 38. 38 Bodily Injury Liability • Are you covered by BI insurance? – You hit a dog and break it’s leg
  39. 39. 39 Bodily Injury Liability • Are you covered by BI insurance? – You hit a dog and break it’s leg No, dogs are not people
  40. 40. 40 Bodily Injury Liability • Are you covered by BI insurance? – You skid off the road and crack your head on the driver’s window
  41. 41. 41 Bodily Injury Liability • Are you covered by BI insurance? – You skid off the road and crack your head on the driver’s window No, BI covers other people you hurt, not you
  42. 42. 42 Bodily Injury Liability • Are you covered by BI insurance? – You run into a telephone pole and your passenger, a friend of yours, gets a gash on their forearm.
  43. 43. 43 Bodily Injury Liability • Are you covered by BI insurance? – You run into a telephone pole and your passenger, a friend of yours, gets a gash on their forearm. Yes, they are hurt; it’s your fault. Note: if your passenger is a member of your household, they would probably NOT be covered by BI insurance.
  44. 44. 44 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  45. 45. 45 Property Damage Liability You damage another person’s property. For example, their fence.
  46. 46. 46 Property Damage Liability • You damage another person’s property • You have to pay for the damage because it was your fault—you are “liable” – For example, you crash into someone’s car damaging their car.
  47. 47. 47 Property Damage Liability You need Property Damage Liability insurance to cover the cost of repairing or replacing their property. You paid a small premium Your insurance company will pay to repair or replace their property (up to the limit of your policy) $5,000
  48. 48. Property Damage Liability 48
  49. 49. 49 Property Damage Liability • Required by the state of California • You must buy Property Damage Liability insurance – You must buy at least $5,000 of PD in case you damage another person’s property
  50. 50. 50 Property Damage Liability What if you have $5,000 of Property Damage Liability insurance but the other person’s car repair bills come to $15,000? $15,000 damage $5,000 of property damage insurance
  51. 51. 51 Property Damage Liability What if you have $5,000 of Property Damage Liability insurance but the other person’s car repair bills come to $15,000? You pay the remaining $10,000 $15,000 damage $5,000 of property damage insurance $10,000 paid by you
  52. 52. 52 Property Damage Liability You pay the remaining $10,000 What if you don’t have $10,000? $15,000 damage $5,000 of property damage insurance $10,000 paid by you
  53. 53. 53 Property Damage Liability You pay the remaining $10,000 What if you don’t have $10,000? $15,000 damage $5,000 of property damage insurance $10,000 paid by you
  54. 54. 54 Property Damage Liability You pay the remaining $10,000 What if you don’t have $10,000? $15,000 damage $5,000 of property damage insurance $10,000 paid by you Future wages garnished.
  55. 55. 55 Liability Insurance, in general Minimum required Bodily Injury Liability and Property Damage Liability is often referred to as: 15/30/5 insurance $15,000 for hurting one person in an accident $30,000 for hurting all the people in an accident $5,000 for Property Damage
  56. 56. 56 Property Damage Liability • Are you covered by PD insurance? – You skid off the road and crash into a wooden fence
  57. 57. 57 Property Damage Liability • Are you covered by PD insurance? – You skid off the road and crash into a wooden fence Yes, you damaged someone else’s property—their fence. Your Property Damage Liability insurance will pay to repair the fence.
  58. 58. 58 Property Damage Liability • Are you covered by PD insurance? – You are driving under the speed limit. A dog runs into the street and you hit it. The dog is hurt.
  59. 59. 59 Property Damage Liability • Are you covered by PD insurance? – You are driving under the speed limit. A dog runs into the street and you hit it. The dog is hurt. No, you are not at fault. Dogs are required by law to be under the control of their owners at all times. You are not liable. You do not have to pay the medical bills for the dog.
  60. 60. 60 Property Damage Liability • Are you covered by PD insurance? – You crash into the car in front of you. No one is hurt.
  61. 61. 61 Property Damage Liability • Are you covered by PD insurance? – You crash into the car in front of you. No one is hurt. Yes, you damaged someone else’s property—their car. Your Property Damage Liability insurance will pay to repair the other person’s car.
  62. 62. 62 Property Damage Liability • Are you covered by PD insurance? – You skid off the road and roll into small pond. Your car has $2,000 of damage.
  63. 63. 63 Property Damage Liability • Are you covered by PD insurance? – You skid off the road and roll into small pond. Your car has $2,000 of damage. No, you damaged your own property—not someone else’s. Property Damage Liability only pays for other people’s property.
  64. 64. 64 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  65. 65. 65 Collision insurance Your car is damaged in a crash or “upset”
  66. 66. 66 “Collision”
  67. 67. 67 “Upset”
  68. 68. 68 Collision • Pays to have YOUR car repaired. • Collision coverage will repair or replace your car up to value of your car – For example: You crash your car into a brick wall. It will take $10,000 to repair your car. Your car is only worth $6,000. The insurance company will only pay you $6,000 to replace your car.
  69. 69. Collision Will only pay for repairing your car if the cost of repair is less than the value of your car. 69 Collision will not pay $4,000 to repair a car that is only worth $200.
  70. 70. Collision insurance How do people know the value of your car? 70 “Kelly Blue Book” www.kbb.com
  71. 71. 71 Collision insurance • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair
  72. 72. 72 Collision insurance • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair You paid a small premium Your insurance company will pay to repair or replace your car (up to the value of your car) Value of your car You pay the deductible
  73. 73. 73 Collision insurance • Has a “deductible” – A typical deductible might be $500 or $1000 You paid a small premium Your insurance company will pay to repair or replace your car (up to the value of your car) Value of your car You pay the deductible
  74. 74. 74 Collision insurance • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair $2000 damage – For example: You have $2000 of collision damage and a $500 deductible collision insurance policy.
  75. 75. 75 Collision insurance • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair – For example: You have $2000 of collision damage and a $500 deductible collision insurance policy. You will pay $500 and the insurance company will pay the remaining $1,500 $2000 damage $500 deductible paid by you $1500 paid by insurance company
  76. 76. 76 Collision insurance • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair – For example: You have $600 of collision damage and a $500 deductible collision insurance policy. $600 damage
  77. 77. 77 Collision • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair – For example: You have $600 of collision damage and a $500 deductible collision insurance policy. You will pay $500 and the insurance company will pay the remaining $100 $600 damage $500 deductible paid by you $100 paid by insurance company
  78. 78. 78 Collision • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair – For example: You have $400 of collision damage and a $500 deductible collision insurance policy. $400 damage
  79. 79. 79 Collision • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair – For example: You have $400 of collision damage and a $500 deductible collision insurance policy. You will pay $400 and the insurance company will pay nothing. $400 damage $400 deductible paid by you
  80. 80. Collision 80
  81. 81. Collision is expensive 81 This part of car insurance is often the most expensive part.
  82. 82. Collision is expensive 82 Cost of insurance depends on your car.
  83. 83. Collision is expensive 83 Cost of insurance depends on your car.
  84. 84. Collision is expensive 84 You can reduce your premium by increasing your deductible.
  85. 85. Collision is expensive 85 You can reduce your premium by increasing your deductible. Premium $500 deductible Premium $1000 deductible Car Value Car Value
  86. 86. Collision is expensive 86 If you have a older car that you’re not making payments on, you may consider not buying this insurance at all.
  87. 87. 87 Collision insurance Collision is NOT required by the state of California
  88. 88. 88 Collision insurance • Are you covered by Collision insurance? – A tree falls on your car while parked in a parking lot.
  89. 89. 89 Collision insurance • Are you covered by Collision insurance? – A tree falls on your car while parked in a parking lot. No, you were not in a collision—you did not run into anything.
  90. 90. 90 Collision insurance • Are you covered by Collision insurance? – You back into a fire hydrant and crumple your bumper
  91. 91. 91 Collision insurance • Are you covered by Collision insurance? – You back into a fire hydrant and crumple your bumper Yes, you ran into something—it was a collision. Collision insurance will pay to repair your car.
  92. 92. 92 Collision insurance • Are you covered by Collision insurance? – A block of wood flies out of the pickup truck in front of you and smashes into your windshield, cracking it
  93. 93. 93 Collision insurance • Are you covered by Collision insurance? – A block of wood flies out of the pickup truck in front of you and smashes into your windshield, cracking it No, this is not considered a collision. We’ll learn more about this situation in a moment.
  94. 94. 94 Collision insurance • Are you covered by Collision insurance? – You are speeding around a turn, lose control, and your car flips over three times. Your car didn’t run into anything but has damage to the roof, hood, and doors.
  95. 95. 95 Collision insurance • Are you covered by Collision insurance? – You are speeding around a turn, lose control, and your car flips over three times. Your car didn’t run into anything but has damage to the roof, hood, and doors. Yes, you were in an “upset” which is covered by your collision insurance.
  96. 96. 96 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  97. 97. 97 Comprehensive insurance You car is damaged by anything except collision or upset.
  98. 98. 98 Comprehensive • You car is damaged by anything except collision or upset • Comprehensive includes things like falling objects, floods, fire, hail, theft, vandalism, and colliding with an animal. • NOT required by state of California
  99. 99. Hope they have “comprehensive” car insurance!
  100. 100. 104 Comprehensive • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair
  101. 101. 105 Comprehensive • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair You paid a small premium Your insurance company will pay to repair or replace your car (up to the value of your car) Value of your car You pay the deductible
  102. 102. 106 Comprehensive • Has a “deductible” – You pay the deductible before the insurance begins to pay for the repair – For example: You have $4,000 of comprehensive damage and a $1000 comprehensive deductible policy. You will pay $1000 and the insurance company will pay the remaining $3,000. $4000 damage $1000 deductible paid by you $3000 paid by insurance company
  103. 103. Comprehensive 107
  104. 104. Comprehensive 108 You can reduce your premium by increasing your deductible.
  105. 105. Comprehensive 109 You can reduce your premium by increasing your deductible. Premium $500 deductible Premium $1000 deductible Car Value Car Value
  106. 106. Comprehensive 110 Your comprehensive deductible should be the same as your collision deductible. Premium $500 deductible Car Value Premium $500 deductible Car Value Collision Comprehensive
  107. 107. Comprehensive 111 If you have a older car that you’re not making payments on, you may consider not buying this insurance at all.
  108. 108. 112 Comprehensive insurance • Are you covered by Comprehensive insurance? – Your car is stolen
  109. 109. 113 Comprehensive insurance • Are you covered by Comprehensive insurance? – Your car is stolen Yes, Comprehensive insurance covers theft.
  110. 110. 114 Comprehensive insurance • Are you covered by Comprehensive insurance? – You run over your garbage can and damage the axle of your car.
  111. 111. 115 Comprehensive insurance • Are you covered by Comprehensive insurance? – You run over your garbage can and damage the axle of your car. No, this is a collision, not a comprehensive loss.
  112. 112. 116 Comprehensive insurance • Are you covered by Comprehensive insurance? – A block of wood flies out of the pickup truck in front of you and smashes into your windshield, cracking it
  113. 113. 117 Comprehensive insurance • Are you covered by Comprehensive insurance? – A block of wood flies out of the pickup truck in front of you and smashes into your windshield, cracking it Yes, Comprehensive covers falling objects.
  114. 114. 118 Comprehensive insurance • Are you covered by Comprehensive insurance? – You skid off the road and drive into small creek. Your car has no dents but does have $2,000 of water damage.
  115. 115. 119 Comprehensive insurance • Are you covered by Comprehensive insurance? – You skid off the road and drive into small creek. Your car has no dents but does have $2,000 of water damage. Yes, Comprehensive covers flooding.
  116. 116. Insurance review 120
  117. 117. What type of insurance will pay? You are driving too fast, skid off the road, and slide into a tree, denting the passenger door of your car. No one is hurt. You want your car repaired. 121
  118. 118. What type of insurance will pay? A thief steals my car and the police chase him. The thief crashes my car into a brick wall. My car is a total loss. I want money to replace my car. 122
  119. 119. What type of insurance will pay? My brother, who does not live in the same house as me, borrows my car to go to the store. He has my permission to drive it. At the store, while smoking crack cocaine in the car, he accidentally sets the car on fire. I need money for a new car. 123
  120. 120. What type of insurance will pay? You are driving on a two lane country road. A truck, going the other way, kicks a rock up off the road cracking your windshield. You turn around, follow the truck and get it’s license plate. You want your windshield repaired or replaced. 124
  121. 121. What type of insurance will pay? You are driving on a two lane country road. A truck, going the other way, kicks a rock up off the road cracking your windshield. You are not able to identify the truck. You want your windshield repaired or replaced. 125
  122. 122. What type of insurance will pay? You are backing up in a parking lot and bump into a car that was waiting to take your parking place. Their car’s bumper is dented but your car seems fine. The owner of the other car wants their bumper repaired. 126
  123. 123. What type of insurance will pay? A raccoon got into your car while your were camping. The raccoon tore up the seats in your car. You want the seats repaired or replaced. 127
  124. 124. What type of insurance will pay? A kid threw a rock at your car and ran away. Now you have a big dent on the driver’s door. You want the dent repaired. 128
  125. 125. What type of insurance will pay? A big wind came up while you were on the freeway and pushed your car. You tried to maintain control but swerved into the car that was passing you on the left. The other car ran off the road and flipped over. The driver was hurt. The other car’s driver wants money for their medical bills and to have their car repaired. 129
  126. 126. What type of insurance will pay? A kid wants to cross the street and just runs out in front of your car. You hit the kid, knocking him to the ground. His wrist is hurt and he’s crying. His mother comes out of a house and takes him to the hospital. She wants you to pay for the emergency room treatment. 130
  127. 127. What is a “deductible” and which parts of auto insurance have a “deductible”? 131
  128. 128. Now, quickly, the last 3 coverages… 132
  129. 129. 133 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  130. 130. 134 Medical Payments insurance Pays for medical attention to anyone who is hurt while in your car—even you.
  131. 131. 135 Medical Payments • Pays for medical attention to anyone who is hurt while in your car—even you. – For example, pays for ambulance, surgery, hospital, even prosthetic devices and funeral expenses • NOT required by the state of California
  132. 132. 136 Medical Payments insurance • Pays regardless of who was at fault • Even pays if you are not in a car at all— even if you are just a pedestrian or are on a bicycle.
  133. 133. 137 Medical Payments insurance Only begins to pay after all other medical insurance you may have is exhausted. (this idea is called “secondary” insurance. Medical Payments is an example of “secondary” insurance)
  134. 134. Medical Payments 138
  135. 135. 139 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  136. 136. 140 Uninsured Motorist insurance Pays if you or your passengers are physically hurt by an uninsured (or underinsured) driver
  137. 137. 141 Uninsured Motorist insurance • You or your passengers are physically hurt by an uninsured (or underinsured) driver • The other driver should have Bodily Injury Liability insurance to cover your injuries. • Uninsured Motorist insurance covers what the other driver should have, but may not.
  138. 138. Uninsured Motorist 142
  139. 139. 143 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  140. 140. 144 Towing and Road Service insurance
  141. 141. 145 Towing and Road Service insurance • Your car won’t run and needs to be towed • “Road Service” includes things like a tire change or a jump start or keys locked in car
  142. 142. Towing and Road Service 146 This part of car insurance is cheap. (less than $5 a month) You will lock your keys in the car. You will run out of gas.
  143. 143. Towing and Road Service 147
  144. 144. 148 7 parts of car insurance 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  145. 145. Car insurance has 7 parts 7 premiums 7 policy limits 149
  146. 146. One more thing about insurance for cars bought on credit… 150
  147. 147. Gap Insurance Loan: $24,000 Car Value: $20,000 Gap
  148. 148. Gap Insurance • You take out a loan to buy a car Loan: $24,000 Car Value: $20,000 Gap
  149. 149. Gap Insurance • You take out a loan to buy a car • You have collision and comprehensive insurance Loan: $24,000 Car Value: $20,000 Gap
  150. 150. Gap Insurance • You take out a loan to buy a car • You have collision and comprehensive insurance • You total your car or your car is stolen. Loan: $24,000 Car Value: $20,000 Gap
  151. 151. Gap Insurance • You take out a loan to buy a car • You have collision and comprehensive insurance • You total your car or your car is stolen. • The insurance company pays you the current value of the car Loan: $24,000 Car Value: $20,000 Gap
  152. 152. Gap Insurance • You take out a loan to buy a car • You have collision and comprehensive insurance • You total your car or your car is stolen. • The insurance company pays you the current value of the car • You still have to pay off the loan Loan: $24,000 Car Value: $20,000 Gap
  153. 153. Gap Insurance • You take out a loan to buy a car • You have collision and comprehensive insurance • You total your car or your car is stolen. • The insurance company pays you the current value of the car • You still have to pay off the loan • The current value of the car is less than what you owe on the loan—you have a “gap” Loan: $24,000 Car Value: $20,000 Gap
  154. 154. Gap Insurance
  155. 155. Avoid needing Gap Insurance 1: make a big down payment
  156. 156. Avoid needing Gap Insurance 1: make a big down payment
  157. 157. Avoid needing Gap Insurance 2: small down payment and short loan period
  158. 158. Avoid needing Gap Insurance 2: small down payment and short loan period
  159. 159. Avoid needing Gap Insurance 3: pay cash for your car
  160. 160. Avoid needing Gap Insurance 3: pay cash for your car
  161. 161. 165 Review These are the only two types of insurance required by the state of California:
  162. 162. 166 Review These are the only two types of insurance required by the state of California: –Bodily Injury Liability –Property Damage Liability
  163. 163. 167 Review This will pay for people you hurt:
  164. 164. 168 Review This will pay for people you hurt: –Bodily Injury Liability
  165. 165. 169 Review This will pay to repair or replace other people’s property that you damage:
  166. 166. 170 Review This will pay to repair or replace other people’s property that you damage: –Property Damage Liability
  167. 167. 171 Review These will pay for damage to your car:
  168. 168. 172 Review These will pay for damage to your car: –Collision –Comprehensive
  169. 169. 173 Review These have a deductible—money you have to pay before the insurance company starts paying.
  170. 170. 174 Review These have a deductible—money you have to pay before the insurance company starts paying. –Collision –Comprehensive
  171. 171. 175 Review These will pay for damage to you:
  172. 172. 176 Review These will pay for damage to you: –Medical Payments –Uninsured Motorist
  173. 173. 177 7 parts of a car insurance policy 1. Bodily Injury Liability insurance 2. Property Damage Liability insurance 3. Collision insurance 4. Comprehensive insurance 5. Medical Payments insurance 6. Uninsured Motorist insurance 7. Towing and Road Service insurance
  174. 174. 178 ---end of presentation---

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