Owning A Vehicle

1. Owning A Vehicle Chapter 16 Part III Motor Vehicle Insurance

2. Financial Responsibility • Anyone who owns or drives a vehicle should have protection against personal injury or damage • You also need protection against loss for injuries to others or damages to the property of others • Every state has a financial responsibility law which requires vehicle owners to prove they can pay for damages or injury in an accident • As of 2000, more than 40 states had laws requiring people to carry insurance—in remaining states, most buy auto insurance by choice

3. Types of Motor Vehicle Insurance • Coverage provided falls into 2 categories • Bodily injury coverage • Protection for property damage

4. Bodily Injury Coverage • Bodily injury liability insurance • Protects insured against for injuries or death caused by negligence • Numbers such as 100/300 are often used • $100,000 is maximum paid for injuries/$300,000 maximum paid to all injured parties in one accident • Medical payments insurance • Pays for medical, and sometimes funeral expenses resulting from bodily injuries to anyone occupying the policy holders car in an accident

5. Bodily Injury Coverage Cont… • Uninsured motorist insurance • Provides protection when the insured is injured in an auto accident that is caused by a driver who has no insurance • Also protects injuries caused by hit-and-runs • Underinsured motorist insurance • Protects you when another driver has insurance, but not enough to pay for any injuries

6. Property Damage Coverage • Property damage liability insurance • Applies when you damage the property of others, including a car, house, telephone pole, or a tree • Person bringing the claim must show driver of vehicle was at fault • Collision insurance • Covers damage to your vehicle when it is in an accident, regardless of who was at fault • Cost can be reduced by having a deductible clause

7. Property Damage Coverage Cont… • Comprehensive insurance • Applies to damage to your vehicle from sources other than collision • Fire • Theft • Lightening • Flood • Hail • Windstorm • Vandalism

8. No Fault Insurance • Regardless of who caused the accident, all drivers involved collect money from their own insurance companies • Coverage varies from state to state

9. What do you think??? Jillian pays 20 percent LESS than her brother, Kendall, for car insurance. They are both 17 years of age. Do you agree or disagree with this practice? Explain your position.