Kansas Insurance Department What every teen should know about Cindy Hermes Director of public outreach June 25, 2014
What every teen should know
We regulate for rate adequacy, not cost We also regulate: More than 1,500 nonresident companies selling policies in Kansas 50 companies headquartered in Kansas More than 109,000 agents 22,000 resident / 86,000 nonresident agents Handle nearly 15,000 phone calls each year, including approx. 6,000 complaints Handle more than 850 fraud cases each year Recovered more than $109 million for consumers since 2003
Basic policy includes four types of coverage (see KID s & shopper s guide booklet for details on minimum amounts required by law): Bodily injury liability Property damage liability Personal injury protection (PIP)/Kansas no-fault Uninsured/underinsured motorist protection
Other coverage available: Comprehensive coverage for fire, theft, windstorm, hail or other losses Collision coverage for damage caused in a collision or rollover accident Neither are required by Kansas law, but may be required by a lender or bank until the vehicle is paid off.
How premiums are determined: Preferred Standard Nonstandard Driver has no moving traffic violations and/or chargeable accidents in the last 3 to 5 years. Pays the lowest premium rates Moderate risk drivers with no more than one moving traffic violation and no chargeable accidents in the last 3 to 5 years. High-risk drivers. May be young, have less driving experience, have had moving traffic violations and/or chargeable accidents. * Chargeable accidents are accidents that the company must pay a claim for.
Optional coverage available: Rental reimbursement Excess medical payments coverage Umbrella liability policy
Tips for teenage drivers Consider the cost of when buying your first vehicle. Insurance rates vary with type and model of vehicle. SUVs and performance cars typically cost more. If you have a low net worth, don t buy too much liability coverage. If you purchase a used car, consider dropping collision coverage as a way to cut expenses. The cost of collision coverage can exceed the value of an older car. A higher deductible will lower your premium.
Tips for teenage drivers Download the WreckCheck app to your smartphone. The app was created by the NAIC and helps drivers know what to do if they are ever in an accident, and helps with filing claims. Visit the app store of your phone or tablet to download.
Tips for parents of teenage drivers If the teenager doesn t own a car (meaning the title isn t in his or her name), you might be able to have the teen rated on the family s personal auto as an occasional operator. Check for discounts for Having multiple vehicles insured with the same company Teen having good grades Teen maintaining a good driving record
Tips for parents of teenage drivers Teenage drivers are commonly assigned to the most expensive car in the household. You can save money by making sure your teen s name is assigned to the correct car. Look into gap. Gap is designed to provide coverage for the difference between the amount owed on the vehicle and the actual cash value of the insured vehicle should that vehicle be totaled in an accident.
As a renter, you have no coverage on your belongings if they are lost in a fire or burglary, or if you are held liable for property damage (e.g. a broken window) or bodily injury. covers: Personal property Liability to property damage & injury to others
Not all property is covered by renters. Common exclusions: Animals, birds or fish Motor vehicles, including equipment & accessories Flood or rising water damage; Water damage from sewer backup Damage from war, terrorism or nuclear hazard Neglect Earthquakes or power failure *Coverage for items such as jewelry, art & collectables is limited. You may need an additional endorsement to cover these items.
The personal liability portion of your renters provides coverage against a claim or lawsuit resulting from bodily injury or property damage to others caused by an accident on your property. The policy is usually limited to $100,000 per claim. This also covers damage to the property of others if you borrow something from a friend or relative, or if you damage another person s property in his or her home.
Actual cash value The company will pay you for the value of your property minus depreciation and physical deterioration. Replacement cost The company will pay you for how much it will cost at today s prices to replace damaged or destroyed property, even if that price is higher than the amount you paid for the original item. ***Most companies provide coverage based on actual cash value, unless you specifically ask for replacement coverage
Example: In 2005 you purchased a couch for $700. The couch is destroyed in 2013 and is worth $300 because of age & wear and tear. New couch costs $900. An actual cash value policy entitles you to the current value of the couch - $300 minus your deductible. If you have replacement coverage, you will receive the $300, and the rest of the $600 when you show proof of purchase (minus your deductible)
Optional coverages available: Coverage for food spoilage Lock replacement Loss of use of residence Fire department service charge Debris removal Theft or illegal use of credit & debit cards coverage for jewelry, art, electronics or collectibles that exceed the limits of the standard renters policy
Premium - The monthly amount you pay to have a health policy. Deductible - The amount you must pay out-of-pocket when visiting the doctor or receiving medical care before your company starts paying. Co The amount you must pay alongside the company for coverage after you meet your deductible (e.g. 80%/20%)
Beginning Jan. 1, 2014, everyone must have health or pay a tax penalty. Options for teens: Stay on your parents health plan until your 26 th birthday Catastrophic coverage a high deductible plan with low premiums that are available to individuals under 30 years old Student health plans available through many colleges & universities
Open enrollment for health : November 15, 2014 through February 15, 2015 Outside of this time period there are special enrollment periods qualifying life events. www.healthcare.gov
Financial assistance will be available to those who have qualifying (low) incomes. From $11,670 for a family size of 1 at 100% of federal poverty level (FPL) to $95,400 for a family size of 4 at 400% of FPL companies must cover vision and dental care for children 18 years and younger. Most health plans specify the hospitals and doctors that accept your health. Make sure your doctor and hospital is included Prescription drugs
To get more detail on these types of, and many others, visit: www.ks.org The Kansas Insurance Department publishes more than 30 booklets, brochures and fact sheets on topics. Visit our website to download them for free, or call our toll-free number to order them by mail: 1-800-432-2484
from KID
Kansas Insurance Department 420 SW 9 th St. Topeka, KS 66612 www.ks.org commissioner@ks.org Phone: 785-296-3071 Consumer Assistance: 800-432-2484 Fax: 785-296-7805