Insurance Unit Test Review

Car insurance uses these factors to determine your premium, EXCEPT...

• Credit History

• Type of residence

• Type of vehicle

• Driving history

Answer explanation

Factors:

Credit history

Previous insurance claims

Geographical location

Good student discounts

Safety features of your car

Taking drivers ed/courses

Type of vehicle

Driving hstory

Mileage of the car

Your deductible

Personal history (age, gender, etc.)

Insurance companies make money by _________.

Your monthly payment to your insurer, regardle of whether you use any services is called __.

If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will _.

A type of auto insurance that can cover you in the event of a crash or accident with another vehicle or object if your car needs to be repaired.

• Collision

• Comprehensive

• Property liability

• Deductible

The amount you pay for covered services before your insurance plan starts to pay.

• Deductible

• Premium

• Co-insurance

• Comprehensive

If you are responsible for a car accident, this type of coverage pays for the medical costs of the people who are injured (not including yourself).

• Collision

• Property liability

• Comprehensive

• Bodily Injury Liability

The percentage of costs of a covered health care service you pay (20%, for example) after you've paid your deductible.

• Premium

• Deductible

• Co-insurance (co-pay)

• Out-of-pocket expenses

___ is an insurance plan that will provide income for illnesses and injuries that will take years to recover from.

Insurance that financially protects any other vehicles and people that are involved in a car accident with you in addition to yourself.

• Co-insurance

• Property liability

• Comprehensive

• Long term disability