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Terms in this set (28)
What are the four types of coverage offered by auto insurance?
2. Medical Payment Insurance
4. Physical Damage
What is the legal minimum amount of auto insurance required?
What does liability coverage protect?
Liability insurance protects other people's bodily injury and property when you are involved in an accident with them.
What does Medical Payments coverage protect?
Covers injuries sustained by the driver of the insured vehicle or any passenger regardless of fault
What does uninsured/underinsured coverage protect against?
Covers injury or damage to the driver, passengers, or the vehicle caused by a driver with insufficient insurance
In what situations would uninsured/underinsured coverage be needed?
Hit-and-run accidents (unidentified driver)
Accident with an uninsured driver
Accident with someone with insufficient insurance to cover the losses
What does personal property/physical damage coverage protect against?
Provides protection for damages caused to your vehicle. There are two forms of coverage: Comprehensive and Collision.
What does comprehensive coverage protect against?
The physical damage to your vehicle caused by a variety of reasons, all typically based in mother nature. Examples include fire, flood, theft, or contact with an animal.
What does collision coverage protect against?
The physical damage to your vehicle after a collision with another object, car, or from a rollover.
How does age impact auto insurance premiums?
People under 25 years of age pay higher premiums.
Does gender impact auto insurance premiums?
Yes. Men tend to have more accidents and pay higher premiums.
Does marriage impact auto insurance premiums?
Yes. Married people, statistically speaking, have fewer auto accidents and pay lower premiums.
What aspects of your driving record impact auto insurance premiums?
Number and severity of accidents.
Number and type of traffic ticket.
Safe drivers have lower premiums.
How does the type and age of the vehicle impact auto insurance premiums?
Newer, more expensive, and higher repair cost vehicles have higher rates
Frequently stolen vehicles have higher rates
Does color of the vehicle impact the auto insurance premium?
No. It is a common misconception but color of the vehicle does not impact insurance premiums.
Does the amount of vehicle use impact the auto insurance premium?
Yes. The more one drives, the more likely an accident may occur. The rates typically rise when vehicles are driven more than 7,500 miles per year.
Does the number of drivers on the policy impact the auto insurance premium?
Yes. The more drivers on the policy the higher the premium. However it is less expensive for a driver under 25 to simply be added to their parents policy in contrast to getting their own.
What are some ways to get discounts on car insurance?
Passing drivers education courses
Being an enrolled, high achieving student
Having anti-theft systems on your car
Having multiple cars on one policy
Staying with the same insurance company for a number of years
When looking at the liability limits of an auto insurance policy it appears in this form: 25/50/10. In this example what does the 25 represent?
It represents the per-person bodily injury limit. In this instance $25,000 is the most which will be paid for any ONE person's bodily injury liability losses from an accident.
When looking at the liability limits of an auto insurance policy it appears in this form: 25/50/10. In this example what does the 50 represent?
It represents the per-accident bodily injury limit for an accident, regardless of how many people were involved. In this instance $50,000 is the most which will be paid for ALL bodily injury losses from an accident.
When looking at the liability limits of an auto insurance policy it appears in this form: 25/50/10. In this example what does the 10 represent?
It represents the property damage liability limit for any one accident under the policy. In this instance $10,000 is the most which will be paid in property damage liability from an accident
What is "No Fault" insurance?
An insurance system in which drivers are responsible for having insurance which will pay for their own injuries and repair to property they damage. Your insurance does not have to have coverage for your own vehicle repairs.
What is distracted driving?
Any activity that could divert your attention away from the primary task of driving.
What are examples of distracted driving (8 listed)?
Adjusting the radio/CD/MP3 player
Using a navigation system
Talking to passengers
Watching a video
Talking/Texting on phone
What are factors that put teenage drivers at risk (5 listed)?
Underestimating dangerous situations
Inability to recognize hazardous situations
More likely to speed
More likely to leave shorter following distances
Lowest rate of seat belt use
What are the steps to take following an automobile accident?
1. Stay calm
2. Call the police
3. Get yourself & vehicle off of the road
4. Exchange information with the other driver
5. Call your insurance company immediately following these other steps.
Why is it important to call your insurance company ASAP, after completing the other steps first, following an accident?
The details are still fresh in your head. You will get your car back quicker.
What pieces of information should you record/exchange with the other driver following an accident (7 listed)?
1. Names and addresses of driver and all passengers.
2. Make/Model of car
3. Insurance carrier and policy number
4. License plate number
5. Drivers license number
6. Any witnesses name and address
7. Police officer name and badge number
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