Auto Insurance

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Title: Auto Insurance

1
Auto Insurance

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2
Importance of Auto Insurance

Incase your are involved in a car accident or
vandalism
It is the law in many states
Just because you are a good driver doesnt mean
that accidents cant happen.
Can you afford to replace or repair your car if
its damaged?
Can you guarantee that everyone on the road is a
great driver and they wont hit your car?

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3
Two Types of Auto Insurance

Liability insurance
Automobile insurance is a state law in the
majority of states. The type of insurance they
require drivers to carry is liability insurance.
Liability insurance insures the driver for the
cost of any damage or injury that is caused to
someone else during an accident.
Comprehensive insurance
Also known as Full-coverage insurance.
This insurance covers basic liability insurance
and pays to repair of replace the policyholders
vehicle, damage to personal property, other
vehicles and bodily injury.
It also covers any type of damage caused such as
fire, theft, flood, vandalism or collision.

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4
Difference Between liability comprehensive Auto
Insurance

The coverage limits in the policies.
Many automobile insurance companies cover
Bodily injury
Property damage
Uninsured motorist
Underinsured motorist
Within these types of coverage there are
individual coverage limits described in the
policy.

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5
Liability Comprehensive Auto Insurance

Three numbers, 50/100/25, describe liability
insurance.
This refers to the amount of coverage, usually
covered in the policy.
For example, 50/100/25 coverage includes 50,000
of bodily injury to a single individual, 100,000
of bodily injury caused to everyone in an
accident, and 25,000 of property damage.
Comprehensive insurance tends to have higher
coverage limits and includes
Uninsured motorists
Underinsured motorists
Some policies cover for rental car service while
your vehicle is being repaired.

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6
Auto Insurance Cont.

It is vital to purchase and maintain car
insurance. Without it, there is a huge amount of
risk to yourself, others, and your future
finances.
If you get in an accident without car insurance
and you cause 80,000 in damages and medical
costs, the courts will likely determine that you
are responsible to pay the money.
The court can garnish wages (automatically take
your pay) to repay the money owed, thus severely
stifling income for many years to come.

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7
Shopping for Auto Insurance

Shopping for insurance can take some time, but
with the Internet you can obtain quotes fast.
Read the policies and special provisions
carefully to make sure you are evaluating
comparable insurances.
Bottom line
Younger people pay higher insurance costs than
older Americans.
Its a fact teenage drivers cause a lot of
accidents.
In fact, the number one killer of teens does not
have a trigger or a plunger it has a steering
wheel.

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8
Auto Insurance Ways to lower the cost.

Good driver discounts
Insurance premiums will increase if you get
speeding tickets.
Get too many tickets, you may not be able to find
insurance at all.
Good grades
As a teen driver, good grades may lower insurance
rates with many companies.
Good car
Young adults that purchase sports cars or 4-wheel
drive vehicles pay more.
Insurance companies figure the insured driver
will be driving fast or off-road, and they dont
want that.
This explains why Mom and Dad do not want you to
drive that the new BMW, but prefer you take the
Honda.

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9
Importance of Renters Insurance

To protect your belongings incase of theft,
leakage or natural disaster like earthquakes.
Take an inventory of what you have and what it
would cost to replace it.
If you just have an old couch and some clothes,
you probably dont want to add the expense of
this insurance.
On the other hand, if you have designer clothes,
computers, furniture and other items that would
cost you a lot to replace, take a look into
renters insurance.

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10
Coverage Limits on Renters Insurance

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11
Steps to ensure you have enough Insurance
Coverage

Contact the companies you currently have your
insurance with and 2 other companies and make
comparisons.
Ask a lot of questions and take good notes.
Consult with a trusted, knowledgeable, friend
that may help you sort through the information
you received.
Make a decision to keep your policies the same or
make changes so you are better protected.
A knowledgeable agent can help you pick the best
insurance to protect you and save you money.

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12
Insurance information .

All insurance policies are made up of an actual
policy and a premium.
This defines that coverage in the policy and the
amount you will pay for the coverage.

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13
Commonly used Insurance definitions

Insurance policy
An insurance contract that describes the type and
amount of coverage, as well as the premiums and
deductibles included in the policy
Insurance premium
The payment made to an insurance company in
exchange for an insurance policy guaranteeing
protection or coverage on what you insure.
Deductible
The amount of the loss you pay out of pocket to
the insurance company on the damaged good.
For example If you get in a car accident and
have 4,000 in damage and a 500
deductible, the insurance company will pay
everything but 500. The 500 is your
responsibility.
.

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14
Commonly used Insurance definitions Cont.

Coverage limits
The maximum amount paid by an insurance company.
Example Your insurance covers only 50,000 in
damages and you have 60,000 in damages, they
will only pay up to the coverage limit.
Insurance policy
An insurance contract that describes the type and
amount of coverage, as well as the premiums and
deductibles included in the policy.