Insurance

What is the purpose of insurance?

• to never have to pay for anything again

• to increase risk

• to transfer risk and to get paid protection

• to take out loans

How does insurance work?

• insurance companies set aside money for each individual

• people share/pool their resources to protect themselves from loss

• you sign up and insurance pays all of your costs

• you pay for most of it and insurance only pays 10%

What should you consider when buying insurance?

• your needs and what is affordable

• whether or not its required

• you should buy whatever insurance is offered to you

• base it on what your friends are buying

What is a premium?

• the limit on what insurance will cover

• the limit on how much you have to pay

• the amount you have to pay before insurance kicks in

• the amount you pay for the insurance policy (monthly, annually, etc.)

What is a deductible?

• the total cost of the insurance policy

• the amount you pay out of pocket before insurance kicks in

• the limit of money you have to cover

• the limit the insurance company will cover you

What is a limit?

• the total cost of insurance

• the amount you have to pay before insurance kicks in

• the max amount your insurance company will cover you for a loss

• the max amount you have to pay out of pocket

What is a claim?

• a request for payment from the insurance company

• the total amount of coverage you have

• the amount your willing to pay for insurance

• the type of insurance plan you have

What is the benefit of having a high deductible?

• you save money on the premium

• you have to pay less out of pocket

• your limit will be lower

• your limit will be higher

What is a con to having a high deductible?

• your premium increases

• if something happens, you have to pay that money out of pocket

• your limit increases

• your limit decreases

What is something that would RAISE your car insurance?

• being a young male

• taking safe driver courses

• parking your car in a garage

• having very few claims