Insurance Concepts and Terms

Front

What is the main purpose of insurance?

Back

To reduce risk

Front

This is what you have to pay before the insurance company will pay anything

Back

deductible

Front

What is an insurance premium?

Back

Your monthly payment to your insurer, regardless of whether you use any services.

Front

When setting your premium, your car insurance company may consider each of the following EXCEPT... How many miles you drive per year, Your age, Your driving record, Your height

Back

Your height

Front

This is the minimum required by law, only repairs the vehicle you hit, not your own

Back

Liability

Front

Which of the following is a way to reduce the cost of your insurance premium? Good grades, Drive less, Where you live, All answers are correct

Back

All answers are correct

Front

Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?

Back

$0

Front

You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $58,000. You have a $75,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?

Back

$58,000

Front

Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages to his car total $6,200. How much will Frank need to pay out-of-pocket?

Back

$1,000

Front

What type of auto insurance are you required to carry in almost every state (49 out of 50)?

Back

Insurance if you cause injury to another person