Ramsey Chapter 9.2

Protection against claims resulting from personal injury or property damage as the result of an auto accident

• Homeowners Insurance

• Comprehensive Insurance

• Collision Insurance

• Liability Insurance

Protection for damage to your car resulting from a collision with another car or object

• Homeowners Insurance

• Comprehensive Insurance

• Collision Insurance

• Liability Insurance

Protection for loss or damage to your vehicle caused by something other than a collision (such as vandalism)​​​​​​​

• Homeowners Insurance

• Comprehensive Insurance

• Collision Insurance

• Liability Insurance

Protection for you and passengers if you‘re hit by an uninsured or underinsured motorist, or if you are the victim of a hit-and-run

• Uninsured/Underinsured Motorist Protection

• Vehicle Insurance

• Hit and Run Protection

A component of auto insurance that pays for medical expenses, lost wages, and other financial losses of the driver and passengers of the policyholder’s vehicle

• Liability Injury Protection (LIP):

• Personal Injury Protection (PIP)

• Parental Injury Protection (PIP):

• Comprehensive Coverage

Your insurance card is your proof of insurance—you‘ll need it if you‘re ever in an accident.

• True

• False

Your insurance card has all the information you’d need in case of an accident: name and policy number, vehicle description, expiration date, and the phone number you’d need to call to get started on the claims process.

• True

• False

Auto insurance can be expensive. Here are some things you can do to lower your cost on auto insurance:

• Get good grades.

  Take a driver education class.

  Drive an older car.

  Shop around for the best rate.

  Stay on your parents’ policy, if you can.

  Be a safe driver.

• Install a car alarm system.

• Increase your deductible.

• Pay your premiums in full.

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

Of the four parts of auto insurance coverage, which part protects only the other person involved in an accident?

• Liability
• Comprehensive
• Collision
• Medical Payments/Bodily Injury