Volunteer Research Notes for Auto Insurance: AAA & Home Insurance AAA

Transcription

1 Slide 1 Keys to Understanding Property Insurance: Auto & Home Everyone faces financial risks! Insurance is about having a back-up plan, in case things don t work out like you planned! We all hope for the best, with no unforeseen accidents or tragedies. But how will you handle an unfortunate situation if it arises? If you don t like to take risks, you will probably want more insurance.

2 Slide 2 Auto Insurance Paying for Coverage: Driving record, age, gender, and annual mileage driven affect auto insurance premiums. What s covered? 1. Liability Coverage: pays others for injuries or property damage that you caused; required by law. 2. Collision Coverage: pays you for medical expenses and damage to your auto that you caused. 3. Comprehensive Coverage: protects you against damages to your auto that are not related to a collision. Liability coverage alone will not cover damage to your car or your medical expenses. The addition of collision and comprehensive will be more expensive, but protect you in case of an accident. Comprehensive covers things like fire, theft vandalism etc.

3 Slide 3 Let s play AAA Risk! Everyone needs a playing card. Are you covered?

4 Slide 4 Auto Insurance What could happen? You were texting and driving, and the traffic suddenly stopped. You rear-ended a car and the driver in that car sustained a neck injury. This means big money! Collision? Comprehensive? What insurance do you need? Liability? Have the students select a card discuss the type of insurance needed to cover this incident.

5 Slide 5 Auto Insurance Collision and Liability Liability will cover the expenses for the auto and driver that you hit. Collision will cover the bills for you. Liability alone would leave your expenses uncovered.

6 Slide 6 Auto Insurance Are You Protected? Your card heart spade diamond club Your coverage only collision only liability collision, liability, comprehensive only comprehensive Collision and Liability would be necessary to cover any automobile damage and medical bills. Ask the students to show their cards for who is covered.

7 Slide 7 Home Insurance Home insurance protects you & is usually required 1. Premium: The cost of insurance (more coverage = higher premium) 2. Cash Value: In the event of a fire, theft or other loss, the insurance company gives you the value of your property today 3. Replacement Value: In the event of a loss, the insurance company gives you what it takes to replace your home or contents at that time You need insurance to protect your things, and many times it is required by lenders or landlords. You will want to make an informed choice about policies. Pay attention to what is included and EXCLUDED. Make sure you understand the difference between cash value policies and the replacement value policies.

8 Slide 8 Home Insurance What could happen? A burglar stole your computer that you bought for $2000 five years ago. Have students use their card again for this activity.

9 Slide 9 Home Insurance If you had cash-value home insurance, would the insurance company pay you $2000? No. Replacement Value insurance will replace the computer with a new and probably nicer computer. With cash value coverage, the insurance company would basically pay you what your computer is worth today not what you paid ($2,000 minus depreciation which may only be $500 ).

10 Slide 10 Home Insurance Are You Adequately Protected? Your card Your coverage face card number card replacement cash value Ask the students to show hands for who has the best coverage: Replacement Value.

11 Slide 11 Home Insurance Risks exist in your future. Insurance will help you manage your risk. That s a lot better than counting on what cards you ll be dealt!

12 Slide 12 AAA Auto Insurance Business ID: 892 AAA Home Insurance Business ID: 973 Unlock these budget categories. Tap either [next] or [unlock more] to return to main research page on tablets. Display this slide during Shopping and Payment. Please display this slide during Shopping & Payment. Please advance to first slide before the next group of students arrives. When all Research is complete, display the last slide for the remainder of the day. Thank you!