Auto Insurance Flashcard

Front

What is the cost in dollars of property damage or injuries covered in your policy?

Back

Loss

Front

What is a legal contract that transfers risk from a policyholder to an insurance provider?

Back

Insurance Policy

Front

Why is it important to have auto insurance?

Back

Because the law requires it, it helps limit financial losses when an accident occurs, it helps you to be prepared for the unexpected, and it plays an important role in your financial security.

Front

What do you pay the insurance company for covering your risk?

Back

Premium

Front

What is a statement detailing the premium you will pay for the specific coverage you request?

Back

Quote

Front

What is the amount you must pay out of pocket before your insurance coverage kicks in?

Back

Deductible

Front

What is the maximum amount an insurance company will pay for a covered loss?

Back

Limit

Front

What is the term for a request for payment from an insurance company for a covered loss?

Back

Claim

Front

What is the regular payment made to an insurance company for coverage?

Back

Premium

Front

What is the difference between liability coverage and collision coverage?

Back

Liability coverage pays for damages to others if you are at fault, while collision coverage pays for damages to your own vehicle regardless of fault.