Evaluating Your Insurance Needs

1. Evaluating Your Insurance Needs Insurance Basics for Students Heading Out on Their Own

2. Evaluating Your Insurance Needs • Auto Insurance • Parts of an auto policy • Factors that determine what auto insurance costs • Auto insurance laws in Ohio • Renters Insurance • Types of homeowners policies

3. Evaluating Your Insurance Needs • Your Insurance Needs • Shopping for insurance • Insurance premiums • Insurance cost saving tips • Settling an insurance claim

4. Parts of an Auto Insurance Policy • Declarations • Your Information • Who’s insured (name and address) • Vehicle(s) covered (V.I.N.) • Your policy specifics • Amount of insurance - Policy Limits • Premium (the price of insurance coverage)

5. Parts of an Auto Insurance Policy • Coverages • Bodily Injury Liability • Property Damage Liability • Medical Payments • Uninsured Motorists • Underinsured Motorists • Uninsured Motorists Property Damage • Damage to Your Auto • Collision • Other Than Collision (Comprehensive)

7. Parts of an Auto Insurance Policy • Definitions • Terms of policy defined • Exclusions • What’s Not Covered in the policy • Conditions • Responsibilities of the contract are specified for you and the company

8. Auto Insurance Cost Factors • Factors that determine cost of insurance • Use of car (to & from work, pleasure) • Value / Type of car (make & model) • Repair costs for car & occupants (crashworthiness) • Where you live and how car is parked • Your driving record • Coverage limits • Sex & Marital status • Good Student Discount • Age of drivers

11. Teen Crashes • Top contributors to teen crashes • Inexperience • Speeding • Passengers / Distractions • Night driving / Road conditions / Weather • Low safety belt use • John Hopkins University study -2000 • 16 yr. old drivers - higher risk of dying behind the wheel • 39% higher with the addition of 1 passenger • 86% higher with 2 passengers • 182% higher with 3 or more passengers

12. Auto Insurance Laws • Ohio’s Financial Responsibility law • Requirements met by having one of the following: • Auto Liability insurance (12,500/25,000 BI; 7,500 PD) • Surety bond of $30,000 • BMV Certificate - bond of $30,000 on file with BMV • BMV Certificate - bond of $60,000 in real estate on file • Certificate of Self Insurance - those w/ 25 or more cars

13. Auto Insurance Laws • Ohio’s Financial Responsibility law • Required to show proof of FR when: • A moving violation requires a court appearance • When stopped by law enforcement officials for a traffic violation, vehicle safety inspection or involved in a crash and asked to provide it • Contacted via mail through the BMV random verification program • Auto insurers provide an Auto Insurance ID Card • Keep it in car - satisfies FR proof when asked by law enforcement officials

14. Auto Insurance Laws • Financial Responsibility law Penalties • Lose Drivers License @ least 90 days up to 2 years • Petition court for limited driving privileges • License plate & vehicle registration suspension • License reinstatement fees of $75-$500 • Requirement to obtain insurance for five years - monitored by insurers and BMV • Vehicle immobilization and confiscation of license plates for 30-60 days for violation FR suspension • 3rd and subsequent offenses - could mean vehicle forfeiture + 5-year moratorium on vehicle registrations

15. Auto Insurance Laws • Ohio’s Graduated Licensing law • Temporary permits can be obtained at 15 1/2 • Drivers training component • Drivers Education Training • Plus 50 hours behind the wheel with Mom & Dad • Probationary drivers license • At least 16 years old • Must pass BMV driving and maneuverability test • Probationary license held until 18 when full privileges without restrictions granted • Curfew restrictions • Penalties • Driving under the influence • Moving violations

18. Renters Insurance • A “package” policy • Personal belongings • Liability coverage • Medical payments to others • Damage to property of others • Additional living expenses • Buildings & structures (with a homeowners policy)

19. Renters Insurance • Types of homeowners policies • Renter • Covers belongings and provides liability coverage • Condo Owner • Covers belongings, some improvements to interior walls and provides liability coverage • Home Owner • Covers belongings, the building and structures and provides liability coverage

21. Your Insurance Needs • Shopping for insurance • Agent, toll-free numbers, internet • Have agent/company representative explain what’s NOT COVERED in the policy - this avoids surprises after a loss • Many prefer to investigate coverage options and prices via the web, then contact an agent or company • Evaluate your need for an agent - is it important to you to have an insurance professional for advice? • Insurance premiums • Paid monthly, quarterly, semiannually, or yearly • Homeowners - watch for PITI in your mortgage • Principal, Interest, Taxes, Insurance

22. Your Insurance Needs • Insurance cost saving tips • Ask about discounts • Good student, more than one car, carrying other types of insurance with the same company • Increase deductibles • Generally, the higher the deductible, the lower the premium • Avoid filing frivolous and/or excessive claims • Comparison shop • Keep property (car and home) well maintained • Use credit wisely and only as needed

23. Your Insurance Needs • Settling an insurance claim • Contact insurance agent/company ASAP • Take steps to prevent future losses to property • Gather as much info as possible about the loss • witnesses, videotape/photo damaged property • An insurance company representative will contact you (claims adjuster) asking details about the loss • Adjuster may want to record your conversation • Work with adjuster to an agreeable negotiation • If not satisfied, you have the option to contact Ohio Dept. of Insurance - Consumer Services Division - for info or to file a complaint (www.ohioinsurance.gov)

25. OII Mission Statement • To strengthen public understanding of and confidence in Ohio’s property/casualty insurance industry. • The OII is a public information and trade association representing insurance companies and agent groups for the property/casualty insurance industry. A primary objective of the OII is to help Ohioans achieve a better understanding of insurance and related safety issues.

26. How to reach OII • Phone: 614.228.1593 • Fax: 614.228.1678 • Email: info@ohioinsurance.org • www.ohioinsurance.org • US Mail: • OHIO INSURANCE INSTITUTE • P.O. Box 816 • Columbus, OH 43216-0816