1 / 9

Ch 2.1 Auto Insurance

Ch 2.1 Auto Insurance. Automobiles & Risk. In America…. 40,000 Americans DIE each year 3,000,000 Americans are injured each year 6,000,000 accidents are reported in America each year In 2000, the cost of those accidents: $230,000,000,000 (Yup, that’s BILLIONS!!!!).

jin
Download Presentation

Ch 2.1 Auto Insurance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Ch 2.1 Auto Insurance Automobiles & Risk

  2. In America… • 40,000 Americans DIE each year • 3,000,000 Americans are injured each year • 6,000,000 accidents are reported in America each year • In 2000, the cost of those accidents: $230,000,000,000 (Yup, that’s BILLIONS!!!!)

  3. Purposes of chapter 2.1 • What does auto insurance do for me? • What should I consider when buying auto insurance? (AKA How can I spend less?)

  4. What does auto insurance do for me? • Financial protection from loss for me AND the other guy • Life • Health • PT/rehab • Lost wages • Property • Legal • Negligence • Recklessness

  5. How can I spend less? • Use seatbelt • Go the speed limit • Know your limits (when in doubt, don’t do it) • Concentrate (no cell phone calls, no texting, no fiddling with the CD player or iPod, no screwing around with your friends in the car!)

  6. What do insurance companies consider when they figure my premiums? Rule: Increase risk = Increase premium • Age: youngest & oldest have most risk (highest rate of fatalities) • Gender: males drive more miles, engage in riskier behavior (2 out of every 3 teen fatalities are males) • Type of Vehicle: if it’s expensive it costs more to replace (damaged or stolen); SUVs cause more damage; if vehicle has safety features (air bags, security system) costs are lower

  7. What else do insurance companies consider when they figure my premiums? • Geographic Location: Where cost of living is high (i.e. NYC, CA) insurance premiums are higher; longer commutes; more crashes where there are more people; fatalities are more likely to occur in rural areas • Driving History: People have habits and patterns of behavior; lotsa tickets or accidents => more tickets & accidents; usual time period to reduce risk is 3-5 years

  8. In Case of an accident… • Help injured • Call police • Prevent more accidents • Get insurance information • Names & addresses of witnesses • Cooperate with police

  9. Effects of Filing Claims May produce higher premiums Filing a lot may cancel your insurance If you are liable and the costs exceed your coverage, you may be sued for the remaining money

More Related