Insurance Test

Auto insurance rates drop consistently until a driver reaches what age?

30

Roughly how much more does auto insurance cost for a 16 year old compared to a middle aged (40-50 year old) driver?

4 times more than the 45 year old.

What is the difference between a copay and coinsurance?

A copay is a certain specific you have to pay when you go to the doctor or get a prescription. Coinsurance is a percentage of the bill that you have to pay

Why do you think that 16-18 year old drivers pay so much more for auto insurance?

Because that is when they first start driving which makes them young and inexperienced, more like;y to get in an accident, likely to engage in reckless activities.

What are some pros of Intermediate coverage?

Higher maximum coverage limits If you are in an accident, you will pay less (often a lot less) out-of-pocket

How do you think the insurance companies select the criteria to determine the cost of your premium?

I think that the insurance companies determine criteria by credit history and by your past health, car crashes, unexpected thing that insurance would cover.

How does your vehicle effect your insurance?

In general, the ( more) your car is worth, the ( more) you'll pay to insure it.

What are some cons of standard coverage?

Lower maximum coverage limits (and usually higher deductibles) If you do get in an accident, you will be paying more out-of-pocket (potentially a LOT more depending on the severity of the accident and the value of your car)

How does your driving history effect your insurance?

One speeding ticket can raise your auto insurance rate by nearly... 30% One DUI can... double

What types of trade-offs should you be aware of when selecting a health insurance plan?

Some tradeoffs are the premiums, how many doctors are available, how many locations are available, how much coverage you need.

How do insurance companies determine how much you should pay for your insurance coverage?

The determine how much you should pay for your insurance coverage from your credit score.

Who pays the premium for employer sponsored insurance?

The employer and it comes out of your paycheck

Jerry has an insurance policy with a premium of $150 per month. In June, he's in an accident and receives a bill with a total cost of $6000. His deductible is $1500, and his coverage limit is $4000. How much total money will Jerry pay in the month of June?

The total is $250.

What are some pros and cons to deductibles?

The upside to having a high deductible is... You can save an average of 9% on your premium. The downside to having a high deductible is... You have to pay more out of your pocket.

Where do insurance companies get the money to pay for losses suffered by their customers?

They get the money from premiums and fees.

Why do all people in a risk pool not pay the same amount?

They pay the same amount because they are paying for general people and not for themselves.

How does your millage effect your insurance?

You pay more if you drive a lot because... The more you drive on the road the more likely you are to get a discount.

What types of drivers generally pay more?

Younger male single people pay the least.

Who pays the premium for Health Insurance market place (Obama care) insurance?

a tax credit pays a portion of the premium depending on your income and you pay the rest.

Medical/ Personal-Injury Protection

covers The costs associated with treating injuries after a car accident

What is a deductable?

how much comes out of your own pocket before insurance starts to pay.

What is an insurace premium?

insurance premium means that you have a bigger budget for expenses and you have more money for fees. the higher the premium, the more companies will cover.

What is Out of Pocket Maximum?

the most that you will ever have to pay in any one plan year. It is important to pay attention because you need to know how much you will need to spend.

driver experience when it comes to car accidents?

the younger or the less experience you have correlates with being more likely to get into car accidents which makes car insurance more expensive. When you are older than 65 you start to lose your reflexes making insurance more.

Who pays the premium for Medicaid insurance?

usually pay none at all the federal government and the state pay.

Can you opt out of insuranse?

you will be fined

What are some pros of standard coverage?

Cheaper monthly premiums If you avoid accidents, you will pay less than someone with Intermediate coverage

Can you think of any other factors, not listed above, that could influence your auto insurance premiums?

Credit history, previous coverage, geographically.

Assume Lauren has the same exact accident, but her monthly premium she pays for the insurance policy is $250. Would you expect Lauren's deductible to be higher, lower, or the same as Jerry's? Why?

I would expect it to be lower because of the premiums cost.

What are some cons of intermediate coverage?

More expensive monthly premiums If you avoid accidents, you will pay more than someone who opted for Basic coverage and avoided accidents

Personal Injury Protection (PIP)

Doesn't matter who was at fault, if you're in a car accident and need your injuries paid for, I'm there for you. Simple as that. However, anything beyond your injuries and I can't help you.

What does guaranteed issue mean, and why is this potentially very beneficial?

Guaranteed issue means you could have any health problem in the world and not be turned down for insurance. This is beneficial is you have major medical problems. This is guaranteed.

No-Fault insurance

covers injuries and property damage, no matter who is ultimately responsible for a given accident.

Collision Insurance

covers makes it so that someone else — your insurer — will pay for the repairs to your car.

What is liability insurance?

covers the event that you are in a car accident and the police decide it is your fault, liability insurance covers the cost of repairing any property damaged in the crash.

comprehensive Insurance

covers with a comprehensive insurance policy, however, your insurer will handle just about any situation that comes up such as weather damage, theft, an animal collision.

Insurance plans _______ the use of in-network doctors by offering lower costs on most services they perform.

encourage

Gap Insurance

is for drivers who still owe money on their cars and need to pay off the vehicle if it is totaled in an accident.

Uninsured motorist protections

is insurance that covers your car in the case that an uninsured vehicle is in the accident.

What is the tax benefit of purchasing health insurance through your employer?

it is not taxed.

What is auto insurance?

nsurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from accidents.