Math 4 Flashcard 8A Auto Insurance

Front

What is a deductible in auto insurance?

Back

A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in for a claim.

Front

What does comprehensive insurance cover?

Back

Comprehensive insurance pays for physical damages to your car from non-collision events, such as fire, theft, or natural disasters.

Front

Who is required to have auto insurance?

Back

All people who drive cars are required to have auto insurance.

Front

What happens if you cause bodily damage exceeding your insurance policy limit?

Back

If you cause bodily damage that exceeds your policy limit, you will have to pay the difference out of pocket.

Front

What is uninsured motorist coverage?

Back

Uninsured motorist coverage pays for damages if you are hit by a driver who does not have insurance.

Front

What is liability insurance?

Back

Liability insurance covers damages you cause to other people or their property in an accident.

Front

What is the purpose of auto insurance?

Back

The purpose of auto insurance is to provide financial protection against physical damage and bodily injury resulting from traffic collisions.

Front

What is the difference between collision and comprehensive insurance?

Back

Collision insurance covers damages to your car from a collision with another vehicle or object, while comprehensive insurance covers non-collision related damages.

Front

What does it mean to be under-insured?

Back

Being under-insured means that a driver has insurance coverage that is not sufficient to cover the damages they may cause in an accident.

Front

What is the role of an insurance policy?

Back

An insurance policy is a contract between the insured and the insurer that outlines the terms of coverage and the responsibilities of both parties.