Auto Insurance Basics

What does Liability Insurance protect against?

• Claims resulting from personal injury or property damage due to an auto accident

• Damage caused by natural disasters

• Damage to your car from a collision

• Theft of the vehicle

What is Collision Insurance designed to cover?

• Damage to your car resulting from a collision

• Medical expenses from personal injuries

• Damage from hitting an animal

• Losses from theft or vandalism

What does Comprehensive Insurance cover?

• Loss or damage to your vehicle caused by something other than a collision

• Injuries to other drivers

• Legal fees from accidents

• Damage from a collision

What is the purpose of Uninsured/Underinsured Motorist Protection?

• To protect you if hit by an uninsured or underinsured motorist

• To cover damages from natural disasters

• To protect against theft

• To cover mechanical failures

What does Personal Injury Protection (PIP) cover?

• Medical expenses, lost wages, and other financial losses of the driver and passengers

• Legal fees

• Theft of personal items from the vehicle

• Damage to your vehicle

Why is auto insurance required by law in most states?

• To ensure all vehicles are new

• To protect against natural disasters

• To avoid fines or loss of license and registration

• To cover the cost of fuel

What types of coverage are included in most basic car policies?

• Travel insurance, pet insurance, flood insurance

• Health insurance, life insurance, home insurance

• Credit insurance, mortgage insurance, liability insurance

• Collision, comprehensive, uninsured motorist, PIP, property damage liability, bodily injury liability

Why should you never drive without auto insurance?

• It increases fuel efficiency

• Cars cannot operate without insurance

• It's required for parking in public areas

• It's illegal in most states

What can you do to lower your cost on auto insurance?

• Drive only on weekends

• Get good grades and take a driver education class

• Use the vehicle for commercial purposes

• Increase the number of accidents you're involved in

What is required to prove you have auto insurance?

• A vehicle registration document

• An insurance card

• A credit card

• A driver's license