Personal Finance Insurance Review

Identify 2 situations where uninsured/under-insured motorists insurance is needed

-Hit and run accidents - Accident with an uninsured driver

Identify and define two of the fees found in an auto insurance policy

-Premium: fee paid to the insurer to be covered under specified terms -Deductible: amount paid by policy holder for initial portion of a loss before the insurance coverage begins

Lemon

A car that goes in and out of the shop monthly

What are 5 factors which influence insurance rates?

Age, gender, martial status, driving record, type and age of vehicle

Who is the arrangement for automobile insurance between?

An individual (consumer) and an insurer (insurance company)

Name the two types of liability which occur from owning and operating a vehicle

Bodily and physical damage

Automobile loan

Borrowed money to purchase an automobile

Identify 2 types of coverage available for physical damage insurance

Comprehensive and collision

Liability insurance

Covers injuries or damage caused to other people or their property

Uninsured/under-insured motorist insurance

Covers injury or damage to the driver, passengers, or the vehicle caused by a driver without insurance

What type of insurance pays for hospital and medical bills?

Medical payment insurance

What type of insurance provides protection for damages to the vehicle?

Physical damage insurance

What type of contact specifies the terms of insurance?

Policy

Identify 2 ways to save money on automobile insurance

Shop around and select appropriate coverage and limits

Down payment

The initial payment made when something is bought on credit

What is one purpose of automobile insurance?

To help individuals limit financial loss when an auto accident occurs

Name 2 optional protection choices for automobile insurance

Towing coverage and rental reimbursment

Risk

Uncertainty about a situation outcome, unpredictable events which can lead to loss or damage