Today’s Lecture State Farm Car Policy

1. Today’s LectureState Farm Car Policy • Uninsured Motor Vehicle Coverage • Underinsured Motor Vehicle Coverage • Other people using your car

2. Uninsured Motor Vehicle Pays damages for accidental bodily injury an insured is legally entitled to collect from the owner or driver of an uninsured motor vehicle

3. Definition of Uninsured Motor Vehicle • A motor vehicle without insurance, with insurance limits below the legally required limits in your state, or if the insurer denies coverage or becomes insolvent • A “hit-and-run” motor vehicle whose owner or driver is unknown which strikes the insured or the vehicle the insured is occupying

4. Deciding Fault and Amount • Whether the insured is legally entitled to collect damages and, if so, the amount must be decided by agreement between the insured and State Farm • If there is no agreement, these questions will be settled by arbitration

5. Uninsured Motor Vehicle - Example You are driving your car when you are hit from behind by an uninsured driver. You are injured and taken to the hospital for treatment. You incur $5,000 in medical bills. You would be entitled to a bodily injury award of $15,000 if the other driver had been insured.

6. Uninsured Motor Vehicle - Example A 0 B 5,000 C 15,000 D 20,000 E None of the above

7. Underinsured Motor Vehicle Same as Uninsured Motor Vehicle except this applies if the at fault driver has bodily injury limits less than your Uninsured Motor Vehicle coverage (100/300)

8. Underinsured Motor Vehicle - Example As a pedestrian you are hit by a driver with 20/40 bodily injury limits. You are entitled to a $50,000 bodily injury award.

9. Underinsured Motor Vehicle - Example A 0 B 20,000 C 30,000 D 50,000 E None of the above

10. How Do Medical Payments and Uninsured/Underinsured Motor Vehicle Coverages Combine? Page 15 - bottom of 1st column and middle of 2nd column 3. “The uninsured (underinsured) motor vehicle coverage shall be excess over and shall not pay again any medical expenses paid under the medical payments coverage.”

11. Medical Payments and Uninsured Motor Vehicle - Example An uninsured driver going the wrong way on a one way street hits you while you are in your car. You incur $25,000 in medical bills and $20,000 in lost wages. You would be entitled to a bodily injury award of $110,000 if the driver had been insured.

12. Medical Payments and Uninsured Motor Vehicle - Example A 0 B 25,000 C 100,000 D 110,000 E None of the above

13. Coverage for Other People Using Your Car Anybody using your car with permission is covered under your policy. Coverage on your car is primary over any other coverage.

14. Other People’s Use of Your Car -Example 1 You let your neighbor borrow your car. He has his own insurance with Fireman’s Fund with the same limits and coverages you have. He hits a pedestrian who sues and is awarded $150,000 in bodily injury.

15. Other People’s Use of Your Car -Example 1 A 0 B 50,000 C 100,000 D 150,000 E None of the above

16. Other People’s Use of Your Car -Example 2 Someone steals your car and runs it into a tree. The driver incurs $30,000 in medical bills and it costs $6,000 to repair your car.

17. Other People’s Use of Your Car -Example 2 A 0 B 5,900 C 6,000 D 30,900 E None of the above

18. Permission Once granted, permission to use your car continues until revoked.