For Speakers: Auto insurance outline

TOOLS FOR CLASSROOM USE

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:

Insured’s responsibility Company’s responsibility
  • Pay premium
  • Report crashes and changes
  • Evaluate driver’s eligibility
  • Evaluate claims for payment
CONTENTS OF A POLICY
DECLARATIONS – List of variables in an auto insurance policy
  • Insured name & address
  • Policy number
  • Policy coverage limits
  • Premium
  • Vehicle description
  • Amount of insurance
  • Deductibles
  • Policy dates of coverage
  • Endorsements, if any
COVERAGES (List 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:

  • $25,000 for any one person killed or injured in an accident caused by the policyholder
  • $50,000 as a total limit for all persons killed or injured in an accident
  • $25,000 for property damage caused in the accident
OHIO’S FINANCIAL RESPONSIBILITY LAW

Explain that Ohio isn’t a MANDATORY INSURANCE state – OH is an FR law 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
  • Importance of maintaining good credit
  • Available discounts (List provided toward the end of this link)
  • 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 presentation, develop various rating examples on youthful drivers. Distribute to students.

AUTO ACCIDENT CHECKLIST
OHIO’S COMPARATIVE NEGLIGENCE LAW
OHIO’S AUTO INSURANCE CANCELLATION LAWS

Explain differences between cancellation, non-renewal and rejection.

SETTLING AN AUTO INSURANCE CLAIM