Car Insurance

What is a deductible?

• A written contract between the insured and the insurer

• The amount a policy will cost a person

• The amount you must pay before the insurance company will pay for your damages

• Exposure to danger, harm, or loss

What is an insurance premium?

• Responsibility for others' losses in an accident you caused

• The cost of insurance coverage

• The amount you have to pay before the insurance will pay a claim

• A chance that one takes

What is a claim?

• Required, compulsory

• The cost of insurance

• A chance that one takes

• A request for payment by an insured person to an insurer to cover losses

Which DOES NOT affect the cost of car insurance?

• Age

• Driving history

• Where a person lives

• A person's job

• Amount of miles you drive

This kind of coverage is great for new and/or expensive cars, since repairing even small damage can be incredibly costly. The damage doesn’t even have to be from an accident with another driver. If you hit an animal, or your car is stolen, or a tree falls on it, you are still covered! This is...

• Comprehensive coverage

• Liability coverage

• Collision coverage

• Personal injury coverage

• Uninsured coverage

The higher the deductible, the lower the premium

• True

• False

A type of car insurance that covers accident damage to your OWN motor vehicle is...

• Collision

• Comprehensive

• Bodily injury

• Uninsured motorist

Peter has collision insurance with a $1,000 deductible. Peter backs his car into a lamppost and causes $4,300 worth of damage to the car. How much will Peter have to pay?

• $4,300

• $1,000

• $3,300

• $0

It is your choice whether to buy car insurance or not.

• True

• False

A deductible is how much your insurance company pays for repairs after an accident

• True

• False