Automobile insurance provides compensation for a loss
incurred while driving a car. The purpose of insurance
is to help
pay for losses that ordinarily you wouldn’t be
able to afford on your own.
An auto policy is a contract – both the insured
and the company make promises:
| CONTENTS OF A POLICY |
| DECLARATIONS – listing of
the variables in a policy |
| |
• Insured
Name & Address
• Policy
number
• $
Limitations
• Premium
• Vehicle
Description |
• Amount
of Insurance
• Deductibles
• Policy
dates of coverage
• Endorsements,
if any |
| COVERAGES (Write on
board or chart as mentioned by class members) |
| |
• Bodily Injury Liability
• Property Damage Liability
• Medical Payments
• Uninsured Motorists (UM)
• Underinsured Motorists (UIM)
• Uninsured Motorists Property
Damage (UMPD)
• Collision
• Other than Collision (Comprehensive)
Also:
• Supplementary
payments
• Definitions
• Exclusions
• Conditions |
| LIABILITY LIMITS |
| |
Under Ohio law, the minimum
amounts of liability insurance that satisfy the Financial
Responsibility law requirements are:
• $12,500 for any one person killed or injured in an accident caused by the policyholder
• $25,000 as a total limit for all persons killed or injured in an accident
• $7,500 for property damage caused in the accident |
| OHIO’S
FINANCIAL RESPONSIBILITY LAW |
| |
• Ohio
Insurance Facts Info
• Brochure
Explain that Ohio isn’t a MANDATORY INSURANCE
state – OH is an FR state. |
| FACTORS THAT AFFECT
THE COST OF AUTO INSURANCE |
| |
(Write on board or chart
as mentioned by class members)
• Age
and Driver classification (includes sex and marital
status)
• Driving Record
• Type and age of car
• Use of car
• Where you live
• Maintaining Good Credit
• Available discounts
• Coverage Limits
Provide Premium Rating Examples – show how factors
and surcharges are applied (examples: youthful driver
male vs. female; with/without good student discount;
high performance car; single vs. married, etc.)
SUGGESTION: Prior to attending, run various rating
examples on youthful drivers from your computer. Distribute
to students. |
| AUTO ACCIDENT
CHECKLIST |
| |
• Brochure
• Be sure to address DUTIES after the crash - Insured’s and company’s |
| OHIO’S
COMPARATIVE NEGLIGENCE LAW |
| |
• Ohio
Insurance Facts Info |
| OHIO’S
CANCELLATION LAWS |
| |
• Ohio
Insurance Facts Info
Explain differences between
cancellation, non-renewal and rejection. |
| SETTLING AN AUTO INSURANCE CLAIM |
| |
• Ohio
Insurance Facts Info |
