Why Buy Insurance?

Learning Goals/Objectives:

What is Ohio’s financial responsibility law for drivers?

What kinds of insurance are available to you?

Do you need insurance if you are a renter?

Is life insurance important for young people?

Overview:

This lesson introduces the basics of insurance with special emphasis on automobile
insurance. The main idea is risk, protection of assets and satisfying the requirement for financial responsibility through the use of insurance.

Grouping of Students:

Class discussion

Methods:

Class discussion

Individual completion of an insurance application form

Activities:

In this activity,
students will complete an application for automobile insurance. Some of the information will be personal
details about you. Other information,
such as the type of automobile and your desired coverage amounts will be your
choice.

Step I Fill in the correct information about yourself.

Step II Complete the information about yourself or make up a driving history for yourself
as if you have been driving for a few years.

Steps III-IV Make up information for these sections. Your
current coverage should be
at least the minimum required by the financial responsibility law.

Step IV Use information about an automobile you would like to drive.

Step V Your liability coverage must be
at least enough to satisfy the Ohio financial responsibility
law. You should protect the value of
your automobile with enough
comprehensive coverage

Procedures

1. Review the Ohio requirements for financial
responsibility for drivers. Discuss the
reasons for required financial responsibility.

Information form the Ohio Insurance Institute: http://www.ohioinsurance.org/factbook/2006/chapter1/chapter1_content.asp

2. Discuss the difference between liability
and comprehensive coverage and the advantages of purchasing coverage beyond the
minimum requirements. http://www.ohioinsurance.org/factbook/2006/chapter1/chapter1_a.asp

3. Discuss the reasons for renters insurance
for college students or young people with few possessions, including the
personal liability coverage. http://www.ohioinsurance.org/factbook/2006/chapter4/chapter4_a.asp

4. Students complete Handout 1, Automobile Insurance Application. Review the required information.

Materials:

http://www.ohioinsurance.org/factbook/index.asp

http://www.ohioinsurance.org/factbook/2006/chapter1/chapter1_content.asp

http://www.ohioinsurance.org/factbook/2006/chapter4/chapter4_a.asp

http://www.ohioinsurance.org/factbook/2006/chapter1/chapter1_a.asp

Assessment:

Students complete the automobile insurance applicarion form.

Students summarize the Ohio financial responsibility law.

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