NIL Auto Insurance Education Curriculum
As NIL (Name, Image, and Likeness) athletes begin to earn income through sponsorships and endorsements, they often look to make significant purchases, such as cars. One of the key responsibilities that come with owning a vehicle is understanding and obtaining auto insurance. The complexities of auto insurance can be daunting for first-time buyers, especially young athletes who may be new to financial literacy.
This NIL Auto Insurance Education curriculum provides a comprehensive guide to help student-athletes understand the essential aspects of auto insurance, how to choose the right coverage, and how to manage their insurance needs responsibly. Through this course, athletes will gain the knowledge necessary to make informed decisions and protect their vehicles, their finances, and themselves.
Module 1: Introduction to Auto Insurance
Learning Objectives:
- Understand the purpose of auto insurance
- Learn why auto insurance is essential for vehicle owners
- Identify the key components of an auto insurance policy
Topics Covered:
What is Auto Insurance? Auto insurance is a contract between a policyholder and an insurance company that provides financial protection in the event of accidents, theft, or damage to the vehicle. Athletes will learn why auto insurance is necessary to safeguard their financial investment in a vehicle.
Why is Auto Insurance Mandatory? Most states in the U.S. require auto insurance by law. Athletes will explore the legal requirements for auto insurance and the consequences of driving without it, including fines, penalties, and potential legal liabilities.
Key Terms to Know: Familiarize athletes with important auto insurance terms such as liability coverage, premiums, deductibles, policy limits, and claims.
Activities:
- Quiz: Identify common auto insurance terms and their meanings.
- Discussion: Why is auto insurance important, and how can it protect you financially?
Module 2: Types of Auto Insurance Coverage
Learning Objectives:
- Learn about the different types of auto insurance coverage
- Understand how each type of coverage applies to different scenarios
- Identify which coverages are required versus optional
Topics Covered:
Liability Insurance: Liability coverage is the most basic form of auto insurance and is required by law in most states. Athletes will learn how liability insurance covers damages to others in accidents where the insured is at fault, including bodily injury and property damage.
Collision Coverage: This type of insurance pays for damages to the insured’s own vehicle in the event of an accident, regardless of fault. Athletes will explore when collision coverage is necessary and how to determine if it’s worth the added cost.
Comprehensive Coverage: Comprehensive insurance covers non-collision-related incidents such as theft, vandalism, and natural disasters. Athletes will understand how this coverage can protect their vehicle from unforeseen events.
Uninsured/Underinsured Motorist Coverage: This coverage protects athletes if they’re involved in an accident with a driver who doesn’t have sufficient insurance. They’ll learn about the risks of uninsured drivers and why this coverage is crucial for financial protection.
Personal Injury Protection (PIP): PIP covers medical expenses for the insured and passengers after an accident, regardless of fault. Athletes will explore how PIP can provide peace of mind in the event of injuries.
Activities:
- Case Study: Compare two insurance policies with different coverage levels. Analyze which policy provides better protection based on a given scenario.
- Interactive Exercise: Build a custom insurance package based on athlete needs and preferences.
Module 3: Determining the Right Coverage for NIL Athletes
Learning Objectives:
- Assess personal needs to determine the right level of coverage
- Learn about the factors that influence insurance premiums
- Understand how to balance cost and coverage
Topics Covered:
How to Assess Your Insurance Needs: Not all athletes need the same level of coverage. Factors like the value of the car, personal driving history, and financial situation will influence the type of insurance that’s necessary. Athletes will learn to evaluate their circumstances to choose the right coverage.
Factors that Affect Auto Insurance Premiums: Athletes will explore how age, driving experience, type of vehicle, location, and credit history affect auto insurance premiums. Understanding these factors can help athletes identify ways to reduce their premium costs.
Deductibles and Policy Limits: Athletes will learn about the role of deductibles (the amount paid out-of-pocket before insurance kicks in) and how setting higher or lower deductibles impacts premium costs and coverage.
Activities:
- Personal Assessment: Each athlete will evaluate their personal insurance needs based on their vehicle, finances, and lifestyle.
- Budgeting Exercise: Athletes will create a mock auto insurance budget, factoring in monthly premiums, deductibles, and additional coverage options.
Module 4: Shopping for Auto Insurance
Learning Objectives:
- Learn how to research and compare auto insurance providers
- Understand the process of obtaining an auto insurance quote
- Identify red flags when choosing an insurance provider
Topics Covered:
How to Compare Auto Insurance Quotes: Athletes will learn the steps to gather quotes from multiple insurance providers, ensuring they get the best deal for their situation. This includes comparing coverage, premiums, and policy terms.
Understanding the Fine Print: Insurance policies can be complicated. Athletes will learn what to look for in the fine print, such as exclusions, coverage limits, and terms that may affect their protection.
Avoiding Common Pitfalls: Athletes will explore common mistakes when shopping for auto insurance, such as underinsuring their vehicle, not reading the terms, or choosing the lowest premium without considering coverage.
Activities:
- Mock Quote Comparison: Athletes will compare quotes from three different insurance companies to identify the best value.
- Insurance Company Research: Analyze online reviews, company ratings, and customer feedback for potential auto insurance providers.
Module 5: Filing Claims and Managing Your Insurance
Learning Objectives:
- Learn how to file an auto insurance claim
- Understand the claims process and how it affects future premiums
- Learn how to manage auto insurance policies over time
Topics Covered:
How to File an Insurance Claim: Athletes will walk through the steps of filing a claim after an accident, including gathering necessary documentation, contacting the insurance company, and understanding the timeline for claim resolution.
How Claims Affect Premiums: Filing a claim can impact future premiums. Athletes will learn how to navigate this situation and understand the cost-benefit analysis of filing claims versus paying out-of-pocket for minor damages.
Reviewing and Updating Policies: Over time, athletes’ insurance needs may change. This module will cover how to regularly review auto insurance policies, update coverage, and ensure they are getting the best rates as their circumstances evolve.
Activities:
- Claims Scenario Exercise: Walk through a sample claims process from the moment of an accident to the settlement of the claim.
- Policy Review: Review a mock insurance policy for gaps in coverage and potential updates.
Module 6: Advanced Auto Insurance Topics
Learning Objectives:
- Understand additional auto insurance options, such as gap insurance
- Learn about discounts available to student-athletes
- Understand the benefits of bundling auto insurance with other policies
Topics Covered:
Gap Insurance: Gap insurance covers the difference between the car’s actual value and what is owed on the loan or lease if the vehicle is totaled. Athletes will learn when gap insurance is a good option and how it protects against depreciation.
Discounts for Student-Athletes: Many insurance companies offer discounts for good driving records, being a student, or bundling policies. Athletes will explore these opportunities to save on premiums.
Bundling Policies: Combining auto insurance with other types of coverage, such as renters or health insurance, can lead to discounts and simplify policy management. Athletes will learn about bundling benefits and how to take advantage of them.
Activities:
- Gap Insurance Simulation: Analyze a scenario where an athlete’s car is totaled and assess whether gap insurance would have been beneficial.
- Discount Research: Find out what discounts are available from different insurers based on student or athlete status.
By the end of this curriculum, athletes will have a thorough understanding of how auto insurance works, how to make smart decisions when choosing a policy, and how to protect their financial future as they navigate the world of NIL.