NEFE High School Financial Planning Program Unit 6 Your Money: Keeping it Safe and Secure. Unit 6 - Insurance: Protecting What You Have

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1 Unit 6 - Insurance: Protecting What You Have

2 Common Exposures to Loss Exposure Risk Potential Loss Accident or Illness Loss of income from inability to work; uninsured medical bills; death UNLIMITED Property Ownership Your property is damaged, destroyed, lost, or stolen Amount needed to replace your property Liability You are found liable for injuries to other people or damages to their property UNLIMITED 6-A

3 Alternatives for Managing the Possibility of Loss Avoid it 6-B Reduce it Accept it Share it

4 MANAGING LOSS???? INJURY IN A CAR ACCIDENT? ALWAYS WEAR SEATBELTS AVOID NIGHT DRIVING OBEY SPEED LIMITS FROM INJURY 6-C

5 Managing the Possibility of Loss Avoid it Reduce it Accept it 6-D Share it

6 Accident or Illness NEFE High School Financial Planning Program My Personal Financial Risk Exposures Exposure Risk How to Evaluate Potential Loss Lost How much would I lose if I Income couldn t work for: 1 week? Unlimited 1 month? 1 year? Medical What is the most this could Bills cost me? Unlimited Death Permanent Unlimited 1 of 2 6-E-1

7 My Personal Financial Risk Exposures 2 of 2 Exposure Risk How to Evaluate Potential Loss Property Ownership Damaged, destroyed lost, or stolen This will be the total dollar amount for the particular item(s) from your Personal Property Inventory (Part A) $ Liability Liability for injuries to other people or damages to their property What is the most this could cost me? Unlimited 6-E-2

8 How much you use the car Make of car If you re a good student Credit rating Factors Affecting Automobile Insurance Costs Driver s education Where you live Marital status Type of car Gender Driving record Do you take the car to work? Your age 6-F

9 Auto Insurance Coverage Suggested Minimums Coverage Type Liability Suggested Minimum Coverage $100,000 per person $300,000 per accident Medical Payments $10,000 per person Uninsured / Underinsured Motorist $100,000 per person $300,000 per accident 6-G

10 Auto Insurance Coverages Policy Section A. Liability B. Medical Payments What It Covers Bodily injury or property damages that you are responsible for because of an accident involving your car Medical and/or funeral expenses for you, members of your family, and other persons injured in an accident while in your vehicle. Also covers your family members as pedestrians if struck by an auto. Suggested Minimum Coverage 6-H-1

11 Auto Insurance Coverages Policy Section What It Covers C. Underinsured and underinsured motorists Suggested Minimum Coverage Bodily Injury Property Your injuries caused by an uninsured, hit-and-run, or underinsured driver. Damages to your vehicle caused by uninsured or underinsured driver 6-H-2

12 Comparing Costs of Auto Insurance COVERAGES LIMITS YOU WANT Company 1 Company 2 Company 3 A. Liability 1. Bodily Injury 2. Property Damage B. Medical Payments C. Uninsured & Underinsured Motorists A. Damage to your car 1. Collision 2. Other than collision loss (comprehensive) $ per person $ per accident $ per accident $ per person $ amount $ Deductible $ Deductible 6-I

13 How to Save Money on Insurance Shop at least three places; compare rates and policies; ask about discounts and special rates. Read sources of information such as Consumer Reports. 1 of 3 Purchase more than one type of insurance from the same company; insure all cars with the same company. 6-J

14 How to Save Money on Insurance Choose the right car. Don t smoke. Select a higher deductible. Carefully consider before adding riders or floaters. 2 of 3 Have a good driving record & good grades ( B or better). 6-J

15 How to Save Money on Insurance Ask about discounts. Eliminate collision and comprehensive coverage if car is older. Reduce your daily driving. Drive defensively. Avoid theft and vandalism. Avoid filing excessive claims. Keep tabs on credit. 3 of 3 6-J