Lines of InsuranceLines of Insurance

What They Are and What They Are and

Why They Are ImportantWhy They Are Important

Created in part by The Texas Department of Insurance

Major Lines of Major Lines of PersonalPersonal InsuranceInsurance

Auto Health Life Homeowner’s Disability

Auto InsuranceAuto Insurance

Liability Liability means obligation. If you are in an means obligation. If you are in an accident, accident, liability liability insurance will pay for injured insurance will pay for injured parties and properties. parties and properties.

It will NOT cover your injuries! You will need to It will NOT cover your injuries! You will need to buy more insurance than the legal minimum to buy more insurance than the legal minimum to cover (insure) yourself and your property.cover (insure) yourself and your property.

Auto InsuranceAuto Insurance If you drive a car in If you drive a car in

Washington, you must Washington, you must have the legal have the legal minimum amount of minimum amount of auto liability auto liability insurance.insurance.

By law, you must have By law, you must have at least auto liability at least auto liability insurance.insurance.

Proof of Current InsuranceProof of Current Insurance You will have to show

proof of current insurance when you:

Get pulled over by the police.

Get your car inspected. Renew your drivers

license. Apply for or renew the

registration for your car.

Auto InsuranceAuto Insurance

If you are pulled over, a police officer can easily check to see if you have valid insurance for your car. If you are caught without insurance, you can be fined hundreds of dollars and possibly lose your license.

Bottom line: If you drive, you must have car insurance!

Auto InsuranceAuto Insurance

Four types of Four types of

COVERAGECOVERAGE

1. Liability1. Liability

2. Medical Payments2. Medical Payments

3. 3. Uninsured/UnderinsuredUninsured/Underinsured

4. Physical Damage:4. Physical Damage:

CollisionCollision

ComprehensiveComprehensive

LIABILITYLIABILITY

When the insured When the insured causescauses

BODILY INJURY orBODILY INJURY or

PROPERTY DAMAGEPROPERTY DAMAGE

to others (NOT in the to others (NOT in the insured’s car)insured’s car)

Auto InsuranceAuto Insurance

Four types of Four types of

COVERAGECOVERAGE

1. Liability1. Liability

2. Medical Payments2. Medical Payments

3. 3. Uninsured/UnderinsuredUninsured/Underinsured

4. Physical Damage:4. Physical Damage:

CollisionCollision

ComprehensiveComprehensive

MEDICAL PAYMENTSMEDICAL PAYMENTSPIP - Personal InjuryProtection PIP - Personal InjuryProtection

Covers injuries to the driver Covers injuries to the driver of the insured vehicle or of the insured vehicle or to any passenger to any passenger regardless of fault.regardless of fault.

It also covers insuredIt also covers insured

Family members injured as Family members injured as passengers in any car OR passengers in any car OR as pedestrians or as pedestrians or bicyclists!bicyclists!

Auto InsuranceAuto Insurance

Four types of Four types of

COVERAGECOVERAGE

1. Liability1. Liability

2. Medical Payments2. Medical Payments

3. 3. Uninsured/UnderinsuredUninsured/Underinsured

4. Physical Damage:4. Physical Damage:

CollisionCollision

ComprehensiveComprehensive

UNINSURED/UNINSURED/

UNDERINSUREDUNDERINSURED

Covers injury or Covers injury or damage to the damage to the driver, passengers, driver, passengers, or the vehicle or the vehicle caused by a driver caused by a driver with insufficientwith insufficient

coverage.coverage.

Auto InsuranceAuto Insurance

Four types of Four types of

COVERAGECOVERAGE

1. Liability1. Liability

2. Medical Payments2. Medical Payments

3. 3. Uninsured/UnderinsuredUninsured/Underinsured

4. Physical Damage:4. Physical Damage:

CollisionCollision

ComprehensiveComprehensive

PHYSICAL PHYSICAL DAMAGEDAMAGE

CollisionCollision covers damage covers damage from a collision with a from a collision with a car or object OR from a car or object OR from a rolloverrollover

ComprehensiveComprehensive covers allother physical damage

except as noted above.

Reading the CoverageReading the Coverage

Example: Example: 50/100/1050/100/10

LIABILITY coverageLIABILITY coverage

Each number Each number representsrepresents

thousands of thousands of dollars.dollars.

11stst number = per number = per person coverageperson coverage

22ndnd number = number = total accident total accident coveragecoverage

33rdrd number = number =

property damageproperty damage

Auto Insurance PremiumsAuto Insurance Premiums

Many factors affect the amount Many factors affect the amount of your premium, such as:of your premium, such as:The coverage limitsThe coverage limitsThe deductibleThe deductibleYour age, gender, GPAYour age, gender, GPAThe color, year, make, and The color, year, make, and model of your carmodel of your carYour credit history!Your credit history!

Health InsuranceHealth Insurance Health insurance is important because you never

know when you might get sick or injured! Even minor injuries or illnesses can cost thousands of dollars to treat.

Many plans will allow you to remain on your parent’s plan until you reach the age of 25 (so long as your parents choose to keep you on the plan).

If you go to college or start working, it is a good idea to have health insurance.

Health InsuranceHealth Insurance

If you are not on your parent’s plan, you may be able to get health insurance from:– Your college (many offer student

health insurance plans)– Your employer (many employers offer

their employees health insurance plans)– Organizations (some organizations offer group health

insurance plans)– Private carriers (remember to shop around to get the

best price possible)

Life InsuranceLife Insurance

Life insurance helps make sure a family has enough money if a primary wage earner dies.

It can help the survivors maintain their lifestyle and can help pay funeral costs.

It is important to have life insurance if you have family members or other people who depend on you for money.

Life InsuranceLife Insurance

When you buy life insurance, you When you buy life insurance, you decide who your beneficiaries will be decide who your beneficiaries will be and how much they will receive. and how much they will receive.

Beneficiaries are the people the Beneficiaries are the people the insurance money will go to when the insurance money will go to when the person covered by the policy dies. person covered by the policy dies.

Homeowner’s InsuranceHomeowner’s Insurance

When you buy a house, keep in mind that insurance is an expense in buying that house. Your lender will require that you have homeowners insurance.

Homeowners insurance won’t cover everything.

You will need to evaluate your situation and decide if you need additional coverage, such as flood insurance, windstorm insurance, earthquake insurance, etc.

Homeowner’s InsuranceHomeowner’s Insurance

A fire occurs in someone’s home in the A fire occurs in someone’s home in the USUS

every 74 seconds!every 74 seconds!

Homeowner’s insurance combinesHomeowner’s insurance combines

propertyproperty and and liabilityliability insurance into insurance into one one

policy.policy.

Homeowner’s InsuranceHomeowner’s Insurance

Property DamageProperty Damage coverage protects coverage protects a home from damage costs due to a home from damage costs due to perilsperils..

A A perilperil is an event which can cause a is an event which can cause a financial loss…such as fire, falling financial loss…such as fire, falling trees, lightning, and others. trees, lightning, and others.

Homeowner’s InsuranceHomeowner’s Insurance

LiabilityLiability coverage protects the coverage protects the insured from being held liable insured from being held liable (responsible) for the financial loss of (responsible) for the financial loss of others.others.

Example: Your guest trips down your Example: Your guest trips down your stairs and breaks her leg…stairs and breaks her leg…

Homeowners InsuranceHomeowners Insurance Homeowners insurance also covers your personal

property, such as furniture and clothing, and will pay for injuries to other people that occur at your house.

The amount of coverage depends on your policy, so make sure to buy the coverage you want and need!

A RIDER is necessary to protect “unusual” items such as rare collections, expensive jewelry, silver.

If you rent instead of own your home, you will want to get Renter’s Insurance. Renter’s Insurance covers your personal property if your rented home is damaged or if your property is stolen.

Disability InsuranceDisability Insurance

It replaces a PORTION (usually 60% - It replaces a PORTION (usually 60% - 70%) of your income if you are 70%) of your income if you are unable to work due to illness or unable to work due to illness or injury.injury.

http://www.youtube.com/watch?http://www.youtube.com/watch?v=qTsM5nAhpCEv=qTsM5nAhpCE

Other Lines of Insurance Other Lines of Insurance

Pet

Commercial (coverage for Businesses)

Title (for real estate)

Jewelry

Boat

Remember!Remember!

Companies charge different rates, even for similar coverages. It pays to shop around!

Having insurance does not get you off the hook! You may still be liable (responsible) for paying for damage or replacements.

Insurance costs money and requires financial responsibility!

Filing an insurance claim can increase future premiums!