Mr. Boyd, a professor of an insurance class at Louisiana State University, spoke to our class Tuesday on auto insurance. He gave our class many handouts to further supplement his presentation. At the end of class he provided us with a self-quiz to test what we learned from him.
Automobile insurance, also known as the personal auto insurance policy appeared in the United States around the late 19th century with the invention of cars. An auto policy contains liability coverage, medical payments, uninsured/underinsured motor vehicle coverage, collision and comprehensive coverage, duties after an accident or loss, and general provisions. Liability coverage is the most important aspect of the personal auto policy. It is what law requires and what protects a person against lawsuits. Liability coverage will state who is covered and what is covered. It is required by Louisiana law that a driver must have liability coverage of 15/30/25. This means that $15,000 will cover body injury per person, $30,000 will cover body injury per accident, and $25,000 will cover property damager per accident. One great thing about having insurance is that all insurance policies will cover damage from under or uninsured motorists at fault. The insurance company has right of subrogation in this instance. Louisiana has a “no pay no play” clause which states that if an uninsured motorist is involved in a wreck, they will receive nothing from the insurance company of the insured. An auto policy will state key duties after an accident occurs. These duties typically are to notify the insurance company, cooperate with insurance company, promptly send all legal documents, and take reasonable steps to protect property from further loss.
Financial planners should always speak to their clients on the topic of risk management. Not only is having auto insurance legal it is also wise. Automobile wrecks can be an uncomfortably large expense to pay out of pocket so auto insurance in a way is preparing an emergency fund.
Professor Boyd did a great job on speaking to our class about insurance. It is obvious that he is a well-learned man and is very well versed on the topic of insurance. I suggest that he be brought back to speak to more courses in the future.
Automobile insurance, also known as the personal auto insurance policy appeared in the United States around the late 19th century with the invention of cars. An auto policy contains liability coverage, medical payments, uninsured/underinsured motor vehicle coverage, collision and comprehensive coverage, duties after an accident or loss, and general provisions. Liability coverage is the most important aspect of the personal auto policy. It is what law requires and what protects a person against lawsuits. Liability coverage will state who is covered and what is covered. It is required by Louisiana law that a driver must have liability coverage of 15/30/25. This means that $15,000 will cover body injury per person, $30,000 will cover body injury per accident, and $25,000 will cover property damager per accident. One great thing about having insurance is that all insurance policies will cover damage from under or uninsured motorists at fault. The insurance company has right of subrogation in this instance. Louisiana has a “no pay no play” clause which states that if an uninsured motorist is involved in a wreck, they will receive nothing from the insurance company of the insured. An auto policy will state key duties after an accident occurs. These duties typically are to notify the insurance company, cooperate with insurance company, promptly send all legal documents, and take reasonable steps to protect property from further loss.
Financial planners should always speak to their clients on the topic of risk management. Not only is having auto insurance legal it is also wise. Automobile wrecks can be an uncomfortably large expense to pay out of pocket so auto insurance in a way is preparing an emergency fund.
Professor Boyd did a great job on speaking to our class about insurance. It is obvious that he is a well-learned man and is very well versed on the topic of insurance. I suggest that he be brought back to speak to more courses in the future.