Auto Insurance

1
Auto Insurance

• What you need and Why you
  need it.

2
Auto Insurance

• What is it
• Auto insurance protects you against financial
  loss if you have an accident. It is a contract
  between you and the insurance company. You agree
  to pay the premium and the insurance company
  agrees to pay your losses as defined in your
  policy.

3
Auto Insurance

• Auto insurance provides property, liability and
  medical coverage
• Property coverage pays for damage to or theft of
  your car.
• Liability coverage pays for your legal
  responsibility to others for bodily injury or
  property damage.
• Medical coverage pays for the cost of treating
  injuries, rehabilitation and sometimes lost wages
  and funeral expenses.

4
Auto Insurance

• Why do you need it?
• Teens have the highest involvement rates in all
  types of crashes
• Many fatal teen crashes involve excessive speed
  or driving too fast for existing road conditions
• 77 of teen crashes involved avoidable driver
  errors
• Motor vehicle crashes are the leading cause of
  death for 15-20 year olds, 10 teens lose their
  lives every day in car crashes
• 31,000 people were killed in crashes involving
  teens between 1995 and 2004
• Since March 2003, 2,600 American troops were
  killed in war-related accidents. In the same
  41-month period, over 22,000 teens 15-19 died in
  car crashes throughout the U.S.

5
Auto Insurance

• Ohios Financial Responsibility Law
• The law requires drivers to be insured or have
  other arrangements to pay for injuries or damages
  they cause in the event of a crash. The law
  provides protection against irresponsible
  drivers.

6
Auto Insurance

• The minimum amounts of liability insurance that
  satisfy Ohios Financial Responsibility Law
•  
• 12,500 for any one person killed or injured in
  an accident caused by the policyholder
• 25,000 as a total limit for all persons killed
  or injured in an accident
• 7,500 for property damage caused in the accident

7
Your Auto Insurance Policy

• What will your policy cover?
• Bodily Injury Liability
• Medical Payments or Personal Injury Protection
  (PIP)
• Property Damage Liability
• Collision
• Comprehensive
• Uninsured and Underinsured Motorist Coverage

8
Your Auto Insurance Policy

• Bodily Injury LiabilityThis coverage applies to
  injuries that you, the designated driver or
  policyholder, cause to someone else. You and
  family members listed on the policy are also
  covered when driving someone elses car with
  their permission.Its very important to have
  enough liability insurance, because if you are
  involved in a serious accident, you may be sued
  for a large sum of money. Definitely consider
  buying more than the state-required minimum to
  protect assets such as your home and savings.

9
Your Auto Insurance Policy

• Medical Payments or Personal Injury Protection
  (PIP)This coverage pays for the treatment of
  injuries to the driver and passengers of the
  policyholder's car. In some cases, PIP can cover
  medical payments, lost wages and the cost of
  replacing services normally performed by someone
  injured in an auto accident. It may also cover
  funeral costs.

10
Your Auto Insurance Policy

• Property Damage Liability This coverage pays
  for damage you (or someone driving the car with
  your permission) may cause to someone else's
  property. Usually, this means damage to someone
  elses car, but it also includes damage to lamp
  posts, telephone poles, fences, buildings or
  other structures your car hit.

11
Your Auto Insurance Policy

• CollisionThis coverage pays for damage to your
  car resulting from a collision with another car,
  object or as a result of flipping over.
• Collision coverage is generally sold with a
  deductible of 250 to 1,000the higher your
  deductible, the lower your premium.
• Even if you are at fault for the accident, your
  collision coverage will reimburse you for the
  costs of repairing your car, minus the
  deductible.

12
Your Auto Insurance Policy

• ComprehensiveThis coverage reimburses you for
  loss due to theft or damage caused by something
  other than a collision with another car or
  object, such as fire, falling objects, missiles,
  explosion, earthquake, windstorm, hail, flood,
  vandalism, riot, or contact with animals such as
  birds or deer.Comprehensive insurance is
  usually sold with a 100 to 300 deductible.
• If you have a car loan, your lender may insist
  you carry it until your loan is paid off.

13
Your Auto Insurance Policy

• Uninsured and Underinsured Motorist Coverage
• This coverage will reimburse you, a member of
  your family, or a designated driver if one of you
  is hit by an uninsured or hit-and-run
  driver.Underinsured motorist coverage comes
  into play when an at-fault driver has
  insufficient insurance to pay for your total
  loss. This coverage will also protect you if you
  are hit as a pedestrian.