Lesson Four: Automobile Insurance (9.4)
Automobile insurance covers some or all of the expenses you incur in the event of a crash. You are required, by law, to have insurance coverage on your vehicle. You must have the minimum insurance required by law which is liability coverage.
Insurance
Factors that affect your insurance rates
Types of Insurance
There are many different types of insurance coverages. Each type of insurance covers different scenarios. As a driver it is important to choose the correct type of insurance that protects you and your family.
Coverage Options
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Uninsured motorist: Covers damage done to you by a driver who does not have insurance. Covers you if you are injured by a hit and run driver.
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Personal Injury Protection: Covers medical expenses and loss of income for you and your passengers, regardless of who was at fault or what type of collision it is. Covers any pedestrian or cyclist harmed by the insured’s vehicle
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Liability Bodily Injury: Pays for injuries to other(s) for which you are partially or entirely responsible. Covers your legal fees whether or not you were at fault
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Liability Property Damage: Pays for damage to the property of others if you are partially or entirely responsible. Covers your legal fees whether or not you were at fault
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Comprehensive: Protects your car against damage caused by theft, fire, earthquake, vandalism, flood, hitting an animal, etc
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Collison: Pays for cost of repairing your vehicle or replacing your car when you or another driver was at fault.
You need to determine if you want more coverage than the minimum required by law. You will need to determine what you want covered and what you can afford when making this decision. There are many factors that determine the cost of insurance.
It is illegal to drive without insurance coverage. If you are pulled over or if you are involved in a crash you must provide proof of insurance coverage. Failure to provide this proof can result in large fines, license suspension, impounded vehicle and potential lawsuits. Keep a current insurance card in the vehicle. You can also use your insurance app as a backup to provide proof.
HW- Insurance
Essential Question
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Explain insurance requirements and the basic types of coverages.