Financial Math: Auto Insurance Flashcard

Front

What is collision coverage?

Back

Collision coverage provides protection for the insured driver's car in case of collision incidents.

Front

What does bodily injury liability coverage protect against?

Back

Bodily injury liability coverage protects against situations where the insured driver causes an accident that injures another person.

Front

What type of insurance covers damages to another person's property caused by the insured driver?

Back

Liability coverage covers damages to another person's property caused by the insured driver.

Front

What is the purpose of comprehensive coverage?

Back

Comprehensive coverage provides protection against damages to the insured vehicle not involving a collision, such as theft or natural disasters.

Front

What does PIP stand for and what does it cover?

Back

PIP stands for Personal Injury Protection, which covers medical expenses and, in some cases, lost wages for the insured driver and passengers.

Front

What is the difference between uninsured and underinsured motorist coverage?

Back

Uninsured motorist coverage protects against accidents with drivers who have no insurance, while underinsured motorist coverage protects against drivers whose insurance is insufficient to cover the damages.

Front

What type of coverage is necessary for a driver to cover their own medical bills after an accident?

Back

Personal Injury Protection (PIP) is necessary for covering the insured driver's own medical bills after an accident.

Front

What does liability coverage NOT cover?

Back

Liability coverage does not cover damages to the insured driver's own vehicle.

Front

In what scenario would collision coverage be used?

Back

Collision coverage would be used when the insured driver's car is damaged in a collision with another vehicle or object.

Front

What is the main purpose of auto insurance?

Back

The main purpose of auto insurance is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions.