Today’s Lecture -State Farm Car Policy

Comprehensive

Collision

Emergency Road Service

ComprehensivePays for loss to your car

except by collision

Includes breakage of glass and loss caused by:

• Missiles• Falling objects• Fire• Theft or larceny• Explosion

• Earthquake• Windstorm• Hail• Water• Flood• Malicious mischief or

vandalism• Riot or civil commotion• Hitting or being hit by bird or

animal

Comprehensive - Example

Someone scratches the paint on your car with a tool. It costs $2500 to sand and paint your car to repair the damage.

Comprehensive - Example

A 0

B 2400

C 2500

D None of the above

Comprehensive -Transportation Costs

Provides up to $25 per day in transportation costs if your car is stolen starting when you report the loss and ending when they offer to pay the loss

Comprehensive -Transportation Costs - Example

Your car is stolen. You immediately report the loss and rent a replacement for $20 per day. Six days later State Farm settles your claim.

Comprehensive -Transportation Costs - Example

A 0

B 20

C 120

D 150

E None of the above

Collision

Pays for loss to your car caused by collision but only for the amount of each such loss in excess of the deductible.

Definition

Collision - means your car upset or hit or was hit by a vehicle or other object.

Collision - Example

Your car is parked at Marketplace Mall while you are shopping. When you return to your car, the rear fender is smashed. You can’t find out who ran into your car. It costs $700 to repair the damage.

Collision - Example

A 0

B 600

C 700

D None of the above

Clothes and Luggage - Comprehensive and Collision

Pays up to $200 in excess of the deductible for loss to your clothes and luggage if they were in the car at the time of the loss.

Clothes and Luggage - Comprehensive

Loss must be caused by:• Fire• Lightning• Flood• Falling objects• Explosion• Earthquake• Theft of the entire car

Clothes and Luggage - Example

You decide to drive to Indianapolis for the weekend. While your car is parked at the Speedway, someone breaks into your car and steals your luggage, which contained your clothes. The luggage was worth $100 and the clothes were worth $200.

Clothes and Luggage - Example

A 0

B 100

C 200

D 300

E None of the above

Limits of Liability - Comprehensive and Collision

The limit of liability is the lower of:

• actual cash value

• the cost of repair or replacement

Emergency Road Service

Pays the cost you incur for:• up to 1 hour of labor costs at site of

breakdown• towing to nearest repair location• towing out if stuck on or next to public

highway• delivery of gas, oil, loaned battery or change

of tire - does not pay for the cost of these items

Emergency Road Service - Example

While driving you get a flat tire. When you discover you don’t have a spare, you call a service station for help. They bring you a new tire and put it on your car. They charge $100 for the new tire and $25 for changing your tire.

Emergency Road Service - Example

A 0

B 25

C 100

D 125

E None of the above