Chapter 5 Vocabulary

What is the term for the amount of money you pay out-of-pocket before your insurance company covers the remaining cost of a claim?

• Premium

• Deductible

• Claim

• Liability

Which type of insurance protects against damages to your car that are not caused by collisions, such as weather, animals, or vandalism?

• Collision Insurance

• Comprehensive Insurance

• Liability Insurance

• Uninsured Motorist Protection

What is the term for the amount of money you pay every month for your insurance coverage?

• Deductible

• Premium

• Claim

• Policy

What does the liable mean?

• Legally responsible for the damages caused

• The possibility of financial loss

• A request for compensation

• A decrease in car value

What is a claim?

• A contract between an individual and an insurance company

• A request made to an insurance company for compensation or coverage

• The amount of money you pay every month

• The decrease in the value of a car over time

Which type of insurance covers the cost of damage you cause to someone else’s property?

• Collision Insurance

• Comprehensive Insurance

• Property Damage Liability

• Uninsured Motorist Protection

What is the purpose of Uninsured Motorist Protection?

• To cover damages to your car from non-collision events

• To pay for your injuries or damage if hit by an uninsured driver

• To cover the cost of damage you cause to someone else’s property

• To decrease the value of a car over time

What does negligent mean in regards to car accidents?

• Legally responsible for damages

• Failing to exercise a reasonable level of care (at fault in an accident)

• A request for compensation

• A decrease in car value

What is an insurance policy?

• A request for compensation

• A contract outlining the terms, coverage, and conditions of insurance

• The amount of money you pay every month

• The decrease in the value of a car over time

What is the Vehicle Identification Number (VIN) used for?

• To calculate insurance premiums

• To track a vehicle's history and details

• To determine liability in an accident

• To request compensation from an insurance company