Chapter 5 Vocabulary

Front

What does risk mean in regards to insurance?

Back

The possibility of financial loss or injury.

Front

What is the term for the amount of money you pay out-of-pocket before your insurance company covers the remaining cost of a claim?

Back

Deductible.

Front

Which type of insurance protects against damages to your car that are not caused by collisions, such as weather, animals, or vandalism?

Back

Comprehensive Insurance.

Front

What is an insurance policy?

Back

A contract outlining the terms, coverage, and conditions of insurance.

Front

What is the term for the amount of money you pay every month for your insurance coverage?

Back

Premium.

Front

What is liability insurance?

Back

Insurance that provides protection against claims resulting from injuries and damage to people or property.

Front

What is a claim in insurance?

Back

A request for compensation from an insurance company for a covered loss.

Front

What does comprehensive insurance cover?

Back

Damages to your car not caused by a collision, including theft, vandalism, and natural disasters.

Front

What is the difference between collision and comprehensive insurance?

Back

Collision insurance covers damages from accidents with other vehicles or objects, while comprehensive insurance covers non-collision-related damages.

Front

What is an insurance premium?

Back

The amount of money paid periodically to an insurance company for coverage.