how many auto accidents a year?

how much is the economic loss?

how many deaths?

33 million

130 billion

43,000

ages <25 make up 26-29% of accidents

and 75 and above make up alot too.

* a four wheeled motor vehicle owned by the insured or leased by the insured for at least 6 continuous months. 

*any vehicle shown in declarations

*a newly required auto

*a trailer owned by the names insured

* a temporary substitute vehicle

coverage begins on the date you become a owner. you receive the broadest coverage shown in the declarations. 

**if the vehicle is an ADDITIONAL VEHICLE, you are automatically covered for 14 days , but you must notify insurer within 14 days after you become owner if you wish coverage to continue. 

**if new car is a REPLACEMENT CAR, you are automatically covered until policy expires and do not have to notify insurer. 

when it comes to collision coverage..if you have it  on at least one vehicle on the declarations page, then your new car automatically has collision coverage for 14 days and if you want it to continue you must let insurer know. 

-if you dont have collision coverage, you are only covered for 4 days and have a $500 deductible.

1. declarations page

2. definitions page

3. A: LIABILITY coverage

4. B: MEDICAL PAYMENTS coverage

5. C. UNISURED MOTORISTS coverage

6. D. COVERAGE for DAMAGE to YOUR AUTO

7. E: DUTiES AFTER an ACCIDENT OR LOSS

8. F: GENERAL PROVISIONS

insurer agrees to pay for any damages for bodily injury or property damage for which any insured is legally responsible because of an auto accident. 

*typically written with split limits: amounts of insurance for bodily injury liability and property damage liability are stated seperately. 

or can have a single limit: ex: $500,000 which means both bodily and PD damage liability would fall under that limit.

30,000 per person BI

50,000 per accident BI

40,000 per accident PD 

1) the named insured and any resident family member.

ex: if you are named insured but your husband isnt, and then yall get a divorce. he only has coverage for 90 more days when he moves out.

But, if yall are both named insured and you split up, he still is covered when he moves out.

2) any person using the named insured's covered auto with permission

ex: children using a car in college

3) any person or organization legally responsible for any insureds use of a covered auto on behalf of that person or organization.

1. intentional injury or damage

2. Property owned or transported

3. Propery rented, used, or in the insured's care. 

-medical payments are paid without regard to fault. (medical payments can still be payed to you) 

-insurers will cover all medical expenses incurred by the insured within 3 years of the accident

-benefits typically range from 1,000 to 10,000 per person.

Part B: Medical Coverages Insured Persons

2 groups

1. named insured and family members

-are even covered if are hit as pedestrians

2. other people while occupying a covered auto.

-if your driving the car and own the vehicle, everyone in it is covered under your PAP. if you dont own the vehicle, they are covered under the PAP of who owns the vehicle 

Part C: Uninsured motorist coverage

stats

13.8% of unisured motorists in the US

1/6 that the at-fault driver in an accident is uninsured.

CO has a high of 36% of drivers uninsured.

GA has a low of 12%

Part D: Coverage for damage to your auto

insuring agreement

two optional coverages:

1. collision coverage

-are paid regardless of fault. 

-if another driver damages your car, you can either collect from the negligent driver or look to your insurer to pay the claim. 

2. OTC coverage

-frequently written with a lower deductible

-glass breakage is OTC but can be a part of collision loss. 

how much can insurers recoup off of auto-salvaging?

what is GRR and what is the typical GRR rate?

10%

Gross Recovery Rate = sales price/ACV ; 15%

what percentage of claims are likely to be fraudulent?

how much is that?

10-15%

10-15 billion dollars

-everyone purchases BI coverage for self. 

-nobody held responsible for BI for othes (relatively small claims)

-why? bc every $23 of $42 dollars paid for BI goes toward general noneconomic losses and legal fees.

* PIP limits range from $1500.00 to $250,000.00 depending on the injury and the state.

 In the case of non-economic (pain-and-suffering) damages, most no-fault systems permit injured parties to seek compensation only in cases of exceptionally "serious" injury, which can be defined in either of two ways:

• A quantitative monetary threshold that sets a specific dollar (or other currency) amount that must be spent on medical bills before a tort is allowed. Disadvantages of this threshold are: (1) that it can encourage insureds (and their medical providers) to exaggerate medical costs through over-utilization, and (2) that, unless indexed, it can become ineffective over time because of inflationary effects on medical costs.

• A qualitative verbal threshold that states what categories of injuries are considered sufficiently serious to permit a tort (e.g., death, or permanent disability or disfigurement). The advantage of the verbal threshold is that it removes any incentive to inflate damage amounts artificially to meet some preset monetary loss figure. The primary disadvantage is that broad interpretation by the courts of the threshold can lead to over-compensation.

primary: age, martial status, sex, use of an auto

secondary: type of auto, # of autos being insured, driving record

requires motorists to carry at least the minimum amount of liability insurance before the vehicle can be licensed or registered. 

--was hoping to reduce the amt of unisured drivers on the road but unfortunately the # hasnt changed much.