Car Insurance – 101Car Insurance – 101

Tom Conklin, State Farm InsuranceTom Conklin, State Farm Insurance

What is Insurance?

Transfer of RiskTransfer of Risk

Law of LargeLaw of Large

NumbersNumbers

What is Car Insurance?What is Car Insurance?

• Liability

• Uninsured Motorist

• Medical Payments

• Comprehensive Coverage

• Collision Coverage

• Towing, Rental, Death Benefit

Do I need Car Insurance? Do I need Car Insurance?

State MandatedState Mandated

- 25 / 50 / 20- 25 / 50 / 20

FineFine

- Minimum $500 Fine- Minimum $500 Fine

- High Risk Insurance- High Risk Insurance

What factors impact my What factors impact my insurance premium?insurance premium?

• Age / GenderAge / Gender

• Personal CreditPersonal Credit

• Driving Experience / RecordDriving Experience / Record

• Use of CarUse of Car

• Type of CarType of Car

• Where you live…..Where you live…..

How can I lower my premiums?How can I lower my premiums?

Multi-Car DiscountMulti-Car Discount

Multi-Line Discount Multi-Line Discount House, Life, Health InsuranceHouse, Life, Health Insurance

Accident Free / Good Driver DiscountAccident Free / Good Driver Discount

How can you, as a new driver, How can you, as a new driver, lower your premiums?lower your premiums?

Good Student Discount - ( 22% ) Good Student Discount - ( 22% ) ““B” B” semestersemester average ( Good for 1 yr ) average ( Good for 1 yr )

Steer Clear Discount - ( 15% )Steer Clear Discount - ( 15% ) Safety Awareness CourseSafety Awareness Course No Tickets / At-fault accident ( Past 3 yrs ) No Tickets / At-fault accident ( Past 3 yrs )

When I turn 16, I am going When I turn 16, I am going to drive a ……….to drive a ……….

(with GSD, SCD, MCD, & MLD)(with GSD, SCD, MCD, & MLD) 2013 Chevrolet Cruze2013 Chevrolet Cruze

– $ 859 Male$ 859 Male– $ 738 Female$ 738 Female

2008 Ford Fusion2008 Ford Fusion– $ 724 $ 724 MaleMale– $ 621 $ 621 FemaleFemale

1997 Chevy Truck1997 Chevy Truck– $ 284 Male$ 284 Male– $ 241 Female$ 241 Female

Premiums are given in 6 month figures and youthful driver is rated as primary driverPremiums are given in 6 month figures and youthful driver is rated as primary driver

Same Car Same Car withoutwithout Good Grades Good Grades and Steer Clear Discountand Steer Clear Discount

2013 Chevrolet Cruze2013 Chevrolet Cruze– $ 1332 Male$ 1332 Male– $ 1015 Female$ 1015 Female

2008 Ford Fusion2008 Ford Fusion– $ 1172 Male$ 1172 Male– $ 852$ 852 FemaleFemale

1997 Ford F1501997 Ford F150– $ 435 Male$ 435 Male– $ 327 Female$ 327 Female

Premiums are given in 6 month figures and youthful driver is rated as primary driverPremiums are given in 6 month figures and youthful driver is rated as primary driver

Credit Not So Good and/ or Credit Not So Good and/ or tickets & accidents (w/o SCD or tickets & accidents (w/o SCD or

GSD)GSD) 2013 Chevrolet Cruze2013 Chevrolet Cruze

– $ 2107 Male$ 2107 Male– $ 1599 Female$ 1599 Female

2008 Ford Fusion2008 Ford Fusion– $ 1796 Male$ 1796 Male– $ 1382 Female$ 1382 Female

1997 Chevy Truck1997 Chevy Truck– $ 739 Male$ 739 Male– $ 552 Female$ 552 Female

I really am a good driver.. butI really am a good driver.. but

Speeding Ticket – Speeding Ticket – 0 – 20 mph over = 0 – 20 mph over = $120$120 21 – 30 mph over = 21 – 30 mph over = $140$140 30 +30 + == $160$160

– Possible Revocation of licensePossible Revocation of license Texting and driving $120Texting and driving $120 Greater than 1 passenger under 20 yrs oldGreater than 1 passenger under 20 yrs old

- Siblings are excluded = - Siblings are excluded = $120$120

Failure to reduce speed to avoid = $120Failure to reduce speed to avoid = $120 Seat Belt $60Seat Belt $60

I only had one beer and a drag…I only had one beer and a drag…

DUI / Possession of a Controlled SubstanceDUI / Possession of a Controlled Substance– License Revoked until age 18License Revoked until age 18– Reviewed for “Reviewed for “possible”possible” reinstatement reinstatement

Breathalyzer - Refuse to “blow” or blow over .04Breathalyzer - Refuse to “blow” or blow over .04– Automatically revoked til age 18Automatically revoked til age 18

No more “Good old boy” police officer’sNo more “Good old boy” police officer’s– Video Tape documentation of all traffic stopsVideo Tape documentation of all traffic stops– Breathalyzer 1Breathalyzer 1stst – questions later – questions later

SummarySummary

Your driver’s license is a Your driver’s license is a privilege!!privilege!!

Who can revoke your license?Who can revoke your license?– Parents – Contact the Secretary of Parents – Contact the Secretary of

StateState– Secretary of StateSecretary of State

Look out for the other guy!!!Look out for the other guy!!!