Vehicle Insurance Section 9-4. Who or What is Protected? / You / Your vehicle / Another person / Another’s property / You / Your vehicle / Another person.

Vehicle InsuranceVehicle Insurance

Section 9-4Section 9-4

Who or What is Protected?Who or What is Protected?

You Your vehicle Another person Another’s property

You Your vehicle Another person Another’s property

Liability InsuranceLiability Insurance

Insurance you buy to protect yourself against financial loss if you injure someone else or damage another's property.

Insurance you buy to protect yourself against financial loss if you injure someone else or damage another's property.

2 TYPES

2 Types of Liability Coverage2 Types of Liability Coverage Bodily Injury

Covers injuries and deaths where you are at fault

Does not cover family members

Required in PA

Policy Limit (Example 25/50/25)

“Split limit”/”Combined Single Limit

Bodily Injury Covers injuries and

deaths where you are at fault

Does not cover family members

Required in PA

Policy Limit (Example 25/50/25)

“Split limit”/”Combined Single Limit

Property Damage

Covers damage you do to someone else’s property

_a_/ _b_ / _c_

A. Max for one person injured

B. Max for all injuries in one accident

C. Property damage one accident

NOTE: stated in thousands

Property Damage

Covers damage you do to someone else’s property

_a_/ _b_ / _c_

A. Max for one person injured

B. Max for all injuries in one accident

C. Property damage one accident

NOTE: stated in thousands

Policy Holder CoveragesPolicy Holder Coverages Medical Payments

Covers your injuries or a family members while in another car or hit by a car. Does not matter who is at fault; your insurance pays PA is a NO FAULT state - Called “Basic First Party Benefits”; not Medical

Payments

Uninsured/Underinsured Motorists Cover you if you are injured by a motorist who is uninsured or underinsured

(ex: hit-and-run driver) Other driver must be at fault

Collision Covers damage to your car resulting from a collision with another car or object

or turning car over. Deductible Clause - amount car owner is willing to pay up front for damages

Comprehensive Covers all other damages to your car except those caused by a collision (ex:

theft, fire, tornado) Deductible Clause

Medical Payments Covers your injuries or a family members while in another car or hit by a car. Does not matter who is at fault; your insurance pays PA is a NO FAULT state - Called “Basic First Party Benefits”; not Medical

Payments

Uninsured/Underinsured Motorists Cover you if you are injured by a motorist who is uninsured or underinsured

(ex: hit-and-run driver) Other driver must be at fault

Collision Covers damage to your car resulting from a collision with another car or object

or turning car over. Deductible Clause - amount car owner is willing to pay up front for damages

Comprehensive Covers all other damages to your car except those caused by a collision (ex:

theft, fire, tornado) Deductible Clause

Financial Responsibility Laws

Financial Responsibility Laws

Compulsory Insurance Law Laws that require you to carry certain types

of auto insurance before a car can be registered

Assigned-Risk Plan Because of bad driving records, some drivers are

unable to buy insurance, but every auto ins. Co. in the state that sells liability insurance is assigned a certain number of high-risk drivers.

No-Fault Insurance Reduce hardships of long and costly court

proceedings so your insurance pays regardless of who is at fault

Compulsory Insurance Law Laws that require you to carry certain types

of auto insurance before a car can be registered

Assigned-Risk Plan Because of bad driving records, some drivers are

unable to buy insurance, but every auto ins. Co. in the state that sells liability insurance is assigned a certain number of high-risk drivers.

No-Fault Insurance Reduce hardships of long and costly court

proceedings so your insurance pays regardless of who is at fault

Extra InformationLease

Get “lease-gap coverage”: If you total your car the insurance will only pay the blue book value, but you may owe more. This coverage covers the “more” you owe.

Limited and Full Tort To have insurance sue for pain and suffering

TowingInstallments

Fees apply if you spread out your premiums

SummaryCoverage Protects

Bodily Injury Liability Injuries/deaths you cause to other people except family members

Medical Payments Any injuries or deaths to you or your family members

Uninsured/Underinsured Motorists

Any injuries or property damage done to you

Property Damage Liability

Damage to other people’s property caused by you

Collision Damage to your car

Comprehensive Damage to your car

Factors Determining Cost

Age Marital Status Auto itself Garaged? Coverages/Deductibles selected Grades/Driver’s Ed Credit Rating