Consumer Math

•Emergency Road Assistance:

Optional Insurance that pays for help which may include, but is not limited to, towing, tire change, or keys locked in car

•Glass Coverage:

Optional Insurance that pays to repair or replace your vehicle's broken windows

•Rental Car:

Optional Insurance that provides a rental car should your car become un-drivable

•Comp & Collision:

Optional insurance that pays to repair your vehicle if it is damaged Ex: Someone steals your car, or your car gets totaled because you ran a red light

•Liability:

Any legal financial responsibility for the injury or damage suffered by another person

•Claim:

Any request or demand for payment under the insurance policy

•Medical Coverage:

Optional Insurance that covers all medical bills resulting from a claim above and beyond the coverage limits

•Premium:

The amount of money an individual pays to the insurance company each month to purchase auto insurance Ex: $300 per month

•Deductible:

The amount of money the insured must pay on each claim before the insurance company will pay for the remainder of the bills up to the coverage limit Ex: $200 per loss

•Co-Payment:

The amount of money the insured must pay on each loss before the insurance will pay anything for that particular loss Ex: $250 per loss claim

•Safe Driver Discount:

A discount on the insurance premium given because the driver has had no tickets or accidents in recent years Ex: 50% off your premium because you drive safely

•Good Student Discount:

A discount on the insurance premium given because the driver is a good student Ex: 40% off your premium because you maintain a 3.0 GPA

•Coverage:

Benefits specifically provided for under the insurance contract Ex: Replace windshield, payment for injury or death, towing

•Coverage Limit:

The maximum amount the insurance company will pay for a particular claim Ex: $15,000 per person & $30,000 for more than one person

•Insurance Policy:

The written document of a contract for insurance