4.3 Automobile Insurance

Front

What is collision coverage?

Back

Collision coverage pays for repairs of damages to your car only.

Front

What is a deductible in automobile insurance?

Back

A deductible is the amount of money that policyholders must pay toward their own covered expenses before the insurance company pays any of the costs.

Front

How much will Juan pay quarterly for his insurance if he pays $980 annually with a $10 processing fee per payment?

Back

Juan will pay $255 quarterly.

Front

What is liability coverage?

Back

Liability coverage is insurance that pays for damages to other people's property or injuries to others if you are at fault in an accident.

Front

What is comprehensive physical damage coverage?

Back

Comprehensive physical damage coverage pays for damages to your car caused by events other than a collision, such as theft, vandalism, or natural disasters.

Front

What happens to Sarah's annual premium if she drops her collision insurance?

Back

Sarah's annual premium will be $825.4 after dropping her collision insurance.

Front

What will Sarah's quarterly payments be after dropping collision coverage?

Back

Sarah's quarterly payments will be $206.35 after dropping collision coverage.

Front

What is the purpose of automobile insurance?

Back

The purpose of automobile insurance is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise therefrom.

Front

What is the difference between full coverage and liability coverage?

Back

Full coverage includes both collision and comprehensive coverage, while liability coverage only covers damages to others if you are at fault.

Front

What is co-insurance in the context of automobile insurance?

Back

Co-insurance is a provision in an insurance policy that requires the insured to bear a portion of the risk, typically expressed as a percentage.