So here you are…

It’s a beautiful sunshine-filled day….

You’re driving

along….

POWSo, now

what????

Whose insurance covers what?

THEMYOU

The PEOPLE in the OTHER car

Depends on whose fault the accident is!!!!

If it’s THEIR fault…

Then it’s THEIR insurance… your insurance doesn’t pay if it’s their fault!

If it’s YOUR fault…Then your insurance does pay!

BODILY INJURY LIABILITY COVERAGE

EXAMPLE:

250,000/500,000 or 250/500

$250,000 for 1st person, $500,000 for ALL

The PEOPLE in YOUR car

MEDICAL PAYMENTS COVERAGE

Medical and funeral expenses Medical and funeral expenses for you, your familyfor you, your family

Doesn’t matter who caused Doesn’t matter who caused accidentaccident

YOUR CAR

• If it is THEIR fault…their insurance.

• If it is YOUR fault…

– COLLISION • Covers your car when colliding with another car or

object• Most expensive part of your insurance

THEIR CAR

• If it is THEIR fault…their problem.

• If it is YOUR fault…

– PROPERTY DAMAGE LIABILITY

– Listed after Bodily Injury Liability: xx/xx/50,000 or xx/xx/50

What happens if your car is stolen, vandalized, or

damaged due to weather?

COMPREHENSIVE

What happens if the other guy is not insured or underinsured?

UNINSURED OR

UNDERINSURED

MOTORIST

Confused???

Here’s what you need!Coverage Who’s fault What’s covered

Bodily Injury Liability YOURS The other PEOPLE

Property Damage Liability

YOURS The other CAR/PROPERTY

Uninsured/

Underinsured motorist

THEIRS Compensates for anything the other driver was supposed to be responsible for

Collision YOURS Your car

Comprehensive Nature, theft, vandalism

Your car

Medical Payments Doesn’t matter You and family in your car

Bodily injury liability (the people in their car)

YOUTHEM

Collision (your car)

YOUR FAULT

Medical Payments(the people in your car)

Property damage liability (their car)

THEY PAY

YOUTHEM

THEY PAY

THEIR FAULT

THEY PAY(Medical payments too)

THEY PAY

Who cares? It’s their fault

YOUTHEM

Uninsured or underinsured motorist

THEIR FAULT – BUT THEY DO NOT HAVE INSURANCE OR NOT ENOUGH

Uninsured/Underinsured, Medical Payments

Who cares? It’s their fault

Natural disaster, theft, vandalism – ANYTHING OTHER THAN A COLLISION

Comprehensive (your car)

What happens..

• You pay PREMIUMS

• You receive a POLICY

• If something happens, you make a CLAIM

• Pay DEDUCTIBLE

What affects your premium?

• Driver classification– age, gender, marital status

• Location of home and work

• Driving record

• Type of car– Safety– Expense

• Claims history

It’s all about RISK!!!!

Are you RISKY????

How can you lower?

• Be a responsible driver

• Drive a moderately priced car– Discounts for certain safety features

• Good grades

• Driver’s Ed

• Live in safe neighborhoods

• Increase the size of your deductible

• Live responsibly