Personal Finance, Ch. 9, Sec. 2.1

Which of these types of insurance do you need after high school? (Choose all correct answers.)

• Renter's

• Car

• Health

• Identity Theft

The least expensive part of your car insurance.

• Collision

• Liability

• Medical

• Comprehensive

Liability covers medical costs and property damage for you if you get in a wreck and it's your fault.

• True

• False

This insurance covers the difference between what you owe on a car and what the insurance company says it's worth.

• Gap

• Par

• Liability

• Comprehensive

This part of auto insurance pays for all accident-related medical costs incurred by you or your family members within 3 years of an accident.

• Medical payment coverage

• Collision insurance

• Comprehensive

• Liability insurance

This part of auto insurance covers damage to your car if it is hit by another car or object.

• Liability

• Medical payment coverage

• Comprehensive

• Collision

If you own money on your car, the lien holder will require collision insurance.

• True

• False

This coverage takes care of damage to your car not caused by a collision. For example, damage from fire, flood, or hail, or if the car is stolen.

• Liability

• Collision

• Comprehensive

• Medical Payment coverage

This covers your costs if you are injured by an uninsured motorist or if you are injured in a hit-and-run accident.

• Uninsured/under-insured motorist protection

• Comprehensive

• Collision

• Medical payment coverage

Before dropping collision on your car, you should do a break-even analysis to see how many years you'd need to go without a wreck for it to make sense.

• True

• False