Intro to business Chapter

Which factors determine the cost of automobile insurance coverage?

-Your age and other characteristics, such as accident record, marital status, or academic standing -The purpose for which you use your car -The number of miles you drive your car each year -The value and type of your car -The community in which you live -Types of coverage and deductables

What are four vehicle insurance laws with which all drivers should be familiar?

Compulsory, Financial Responsibility, Assigned risk plans, and No- Fault.

Comprehensive coverage?

Insurance protection against almost all losses except those caused from a collison or from the car turning over.

Property damage liability coverage?

Insurance protection against claims if your car damages someone else's property and you are at fault.

If you are protected by an automobile insurance policy and are sued as the result of an accident, how will the insurance company help you?

It will aid you financially from sueing if you or your property is injured

Compolsory insurance laws?

Laws that require you to carry certain types of automobile insurance before your car can be licensed.

Financial responsibility laws?

Laws whereby your driver's license will be suspended or taken away if you cause an accident and cannot pay for the damages either through insurance, your savings, or the sale of property

What does 100/300 mean in terms of bodily injury liability coverage?

The Insurance company would pay up to 100,000 dollars if one person was injured, 300,000 being the limit amount the company would pay if more people were injured

Which type of automobile insurance protects you against damage caused by a hit and run driver?

Uninsured Motorist Protection Coverage

No- Fault insurance laws?

A plan in which people injured in automobile accidents are required to collect for their financial losses from their own insurance companies no matter who is at fault.

Assigned-risk plan?

Automobile insurance that provides coverage to high risk drivers who are unable to purchase it otherwise.

What are the three types of personal injury coverage?

Bodily injury liability protection, Medical payments protection, and uninsured motorist protection.

Why would someone be required to purchase insurance from an assigned- risk plan?

Every automobile insurance company in the state that sells liability insurance is assigned a certain number of high risk drivers.

Collision Coverage?

Insurance coverage that protects a car owner against financial loss associated with damage from a collison with another car or object or from the car turning over.

Uninsured motorist coverage?

Insurance coverage that protects the policyholder and immediate family members against losses resulting from injuries caused by a hit and run driver who has no insurance and inadequate money to pay claims.

Bodily injury liability insurance?

Insurance coverage that protects you from claims resulting from injuries or deaths for which you are found to be at fault.

Medical payments coverage?

Insurance coverage that provides medical expense protection for the policyholder, immediate family members, and guests while in the insured person's car.

What other vehicles, other than automobiles, may be covered with insurance similar to automobile insurance?

Motorcycles, Snowmobiles, and Boats

What are the two categories of automobile insurance?

Personal Injury Coverage and Property Damage insurance

What kind of coverage is required under compulsory insurance laws?

Personal Injury and and Property damage

What are the three types of automobile insurance designed to protect you against economic loss due to damage to the property of others and to your car?

Property damage liability, Collision insurance, and Comprehensive coverage.

Automobile liability insurance?

The general term used to describe insurance you buy to protect yourself from financial loss if you injure someone else or damage someone else's property in an automobile accident.

What is the purpose of vehicle insurance?

To provide the protection from the financial risks involved in owning a car or another vehicle.