AUTOMOBILE INSURANCE

1. AUTOMOBILE INSURANCE WHAT YOU NEED TO KNOW AS A BEGINNING DRIVER!

2. What type of insurance is required in NJ? Do Now

3. Liability Answer

4. What could be damaged and who could possibly be injured in an automobile accident? • How is it covered? Learning Partner #4 Brainstorm

5. Your car? • Another car(s)? • Personal or business property? • You, the driver? • Your passenger(s)? • Occupants in other cars or vehicles? • Public property: street signs, bridges, school buses? Possible Damages?

6. Statistics STATISTICS SHOW THAT TEENAGERS HAVE A GREATER CHANCE OF BECOMING INVOLVED IN AN ACCIDENT THAN DRIVERS IN ANY OTHER AGE GROUP! ARE YOU AGE 16 -25?

7. Agent – A person who sells insurance; your direct contact with an insurance company. • At-fault – Describes the person who did something to cause an accident. • Deductible – The amount of money you agree to pay when there is a loss. • Insured – The person receiving insurance coverage under the insurance policy. • Insurer – Another term for the insurance company or anyone who provides insurance. • Policy – A written document that serves as evidence of an insurance contract which contains the pertinent facts about the policy owner, the insurance coverage, the insured and the insurer. • Premium – The amount you pay in exchange for insurance coverage. • Claim – request by the customer for a payment following an accident. Terms to Know

8. THERE ARE 3 TYPES. • 1 YOU ARE REQUIRED TO BUY. • IT IS ILLEGAL TO DRIVE WITHOUT THE REQUIRED COVERAGES. WHAT’S REQUIRED IN NJ?

9. LIABILITY*** required to buy NJ • Covers damage to other property and persons. • Minimum 15/30/5 (one person-single claim-property) • PERSONAL INJURY PROTECTION (PIP) • Covers your medical cost • UNINSURED/UNDERINSURED • Covers you incase of uninsured driver • Insurance REQUIRED

10. COVERS THOSE INJURED/KILLED FOR WHICH YOU ARE LEGALLY TO BLAME. • YOU ARE REQUIRED TO PURCHASE THE MINIMUM: • $15,000 FOR INJURIES TO ONE PERSON. • $30,000 FOR ALL INJURIES IN A SINGLE CLAIM. LIABILITY (BODILY INJURY)

11. PAYS TO REPAIR DAMAGE TO OTHER PEOPLES CARS/PROPERTY CAUSED BY YOUR AUTOMOBILE. • THE MINIMUM REQUIREMENT IS $5,000. LIABILITY (PROPERTY DAMAGE)

12. COLLISION PAYS FOR THE COST TO REPAIR YOUR CAR IF YOU ARE AT FAULT. • INVOLVES A DEDUCTIBLE (amount you must pay first) • MAXIMUM PAYOUT IS BASED ON “BLUE BOOK” VALUE OF THE CAR. • REQUIRED BY LEASE/FINANCE PLANS. • Kelley Blue Book 2 OPTIONAL COVERAGES

13. COMPREHENSIVE PAYS THE COST OF REPAIRS/REPLACEMENT IF YOUR CAR IS: • STOLEN • VANDALIZED • DAMAGED BY: FLOOD, DEBRIS, ANIMALS, NATURE. • INVOLVES A DEDUCTIBLE 2 OPTIONAL COVERAGES

14. TOWING PAYS FOR THE PARTIAL COST OF TOWING YOUR VEHICLE • RENTAL REIMBURSEMENT PAYS PARTIAL COST OF RENTAL FEE IF YOUR CAR IS NOT DRIVEABLE. 2 TYPES OF “RIDERS”/ ENDORSEMENTS

15. DEFINITION of 'Deductible' The amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs. • BREAKING DOWN 'Deductible' For example, if you get into an accident and your damages to your vehicle are $2,000 and your deductible is $300, then you would have to pay the $300 out-of-pocket first before the insurance company paid the remaining $1,700. However, if your accident only resulted in $300 in expenses, then you would pay the $300 deductible and the insurance company would pay nothing. Deductible

16. Complete the worksheet Factors that affect car insurance

17. FACTORS THAT CONTROL YOUR RATES 1. AGE 2. GENDER 3. MARITAL STATUS 4. TYPE OF CAR (MAKE, MODEL, OPTIONS) 5. WHERE CAR IS KEPT (STREET, DRIVEWAY, GARAGE) 6. PREVIOUS DRIVING RECORD INSURANCE COSTS

18. DRIVER TRAINING (BTW, DEFENSIVE DRIVING COURSE, CLASSROOM D.E.). • SAFETY EQUIPMENT (ABS (anti-lock braking system), AIR BAGS, AUTO SEATBELTS, TRACTION CONTROL SYSTEMS, SAFETY BUMPERS). • ACADEMICS (HONOR ROLL, 3.0) • ANTI-THEFT DEVICES (ALARMS,TRANSMITTERS, WINDOW ETCHING) • MULTI-CAR DISCOUNTS • GOOD DRIVING RECORD POSSIBLE DISCOUNTS

19. Complete insurance vocabulary worksheet Worksheet

20. Do Now: review answers from insurance vocab and quiz Example scenarios Auto Insurance open note assessment Extra time: videos OBJ: Identify auto insurance types

21. review answers from insurance vocab and quiz Do Now

22. Liability insurance 15,000/30,000/5,000 • Comprehensive - deductible $300 • Collision - deductible $500 Policies

23. You are driving down Route 70 when you hit the car in front of you. The accident is considered your fault. The damage to the other car is $5,000. What type of insurance does this fall under? How much money will you have to pay for the other vehicle? How much money will the insurance company have to pay for the other vehicle? Scenario #1

24. Liability-property • $0 • $5,000 Answer #1

25. You are driving home from the mall. You swerve and hit a stop sign causing $1,000 in damages to your car. • What type of insurance does this fall under? • How much money will you have to pay for your vehicle? • How much will the insurance company have to pay for your vehicle? Scenario #2

26. Collision • $500 • $500 Answer #2

27. Hurricane Sandy came to NJ over the weekend. Your car flooded and got $700 worth of damages. • What type of coverage does this fall under? • How much do you have to pay for your vehicle? • How much will your insurance company have to pay for your vehicle? Scenario #3

28. Comprehensive • $300 • $400 Answer #3

29. NJ auto insurance rating Types

30. AAA Superbowl 15 https://www.youtube.com/watch?v=gIpMrY458AYAllstate https://www.youtube.com/watch?v=vtP-S9OS0o0Curehttps://www.youtube.com/watch?v=93IWDUBFfjMLibertyhttps://www.youtube.com/watch?v=m2FU5oa1r54Progressive https://www.youtube.com/watch?v=0nIOBxknD_U • https://www.youtube.com/watch?v=nwRg8ovPekI • Nationwide • https://www.youtube.com/watch?v=MpmgVZWRLYI Insurance commercials