7.4: Insurance

7.4: Insurance

Insurance

• You are required to have auto insurance before registering a new car.

• The monthly payments to the insurance companies, called insurance premiums, can be a significant part of your expenses.

• These insurance premiums vary from person to person and young people in particular, can have high insurance payments.

Open Ended

List 2 factors that may affect someone's insurance rates (cost).

Factors that Affect Insurance Rates

• Age

• Car Make and Model

• Yearly Mileage

• Credit History

• Driving Record

• Marital Status

• Gender

Types of Auto Insurance

• Liability

• Accident Benefits

• Uninsured/Underinsured Driver Protection

• Direct Compensation

• Comprehensive Coverage

• Collision Cover

• Transportation Replacement Coverage/Depreciation Coverage

Poll

Do you believe that it is illegal to not have any insurance coverage for your vehicle?

• yes

• no

Open Ended

Why do you think you need insurance for a vehicle?

Liability

• Required by law

• If you are partially or fully at fault, it covers other people's vehicles and if someone else is injured or killed.

Accident Benefits

• Required by law

• If you are injured or killed, insurance covers income replacement or medical costs

Direct Compensation

• Required by law

• Pays for damage to your vehicle if you are partially at fault or another insured driver is fully at-fault

Comprehensive Coverage

• Not required by law

• Pays for damage to your vehicle caused by theft, vandalism, or acts of god

Collision Cover

• Not required by law

• Pays for damage to your vehicle if you are fully at-fault for the accident

Transportation Replacement Coverage

• Not required by law

• Covers your transportation costs while your vehicle is being repaired

Depreciation Cover

• Not required by law

• Replaces your vehicle if it is stolen or damaged beyond repair

Uninsured/Underinsured

• Required by law

• If an unknown driver (hit and run) or uninsured driver is at fault, it pays for damage to your vehicle (if the driver is identified)

Multiple Choice

Liability insurance is required by law.

• True

• False

Multiple Choice

Comprehensive coverage is required by law.

• True

• False

Poll

How much do you think insurance would cost you per month as a teenage driver?

• Less than $100

• $100-200

• $200-300

• more than $300

Open Ended

What are some things that you can do to reduce your insurance costs?

Open Ended

Using the internet, define what insurance brokers refer to as an occasional driver.

Open Ended

Define principal driver.

Open Ended

What is a deductable?

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Homework

Warm-up Page 194 #1-6

Page 194-197 #1-8