Car Insurance and Depreciation

The higher the deductible the lower the premium

• True

• False

Before insurance begins to cover a patient, the ___ must be paid first, the the insurance will begin to pay.

• Medicaid
• HMO
• PPO
• deductible

A type of car insurance that covers damage to your OWN motor vehicle is

• collision
• comprehensive
• bodily injury
• uninsured motorist

This type of insurance protects against damage to the car OR injury to persons in the car caused by a driver who carries no insurance.

• collision
• comprehensive
• property
• uninsured motorists

If a vehicle costing $10,000 depreciates by 10% each year for 3 years, what is the cost of the vehicle after 3 years?

• $7,000

• $7,290

• $13,000

• $13,310

A disadvantage of buying a new car is it loses value faster than a used car. This is called

• Capital gain

• Inflation

• Depreciation

• Amortization

Peter has collision insurance with a $1,000 deductible. Peter backs his car into a lamppost and causes $4,300 worth of damage to the car. How much will Peter have to pay?

• $4,300

• $1,000

• $3,300

• $0

The amount of money you have to pay out of your own pocket before the insurance pays is called the _____________

• Premium
• Estimate
• Deductible
• Co-Pay

The amount you pay for an insurance policy.

• Rider
• Premium
• Deductible
• Co-Pay

It is your choice whether you buy car insurance or not.

• True

• False