Understanding Automobile Insurance Concepts

This video tutorial covers essential automobile insurance concepts, including key terms like liability, negligence, and deductibles. It explains various types of insurance coverage such as bodily injury, property damage, and comprehensive insurance. The tutorial also provides practical examples to illustrate how insurance calculations work, focusing on premiums, deductibles, and coverage limits. The video concludes with a discussion on understanding insurance limits and payouts, ensuring viewers grasp the importance of adequate coverage.

What is the primary focus of the introduction section in the video?

• Overview of automobile insurance vocabulary.

• Examples of insurance claims.

• Discussion on deductibles.

• Detailed explanation of liability.

What does it mean to be 'liable' in the context of automobile insurance?

• Being at fault for an accident.

• Being responsible to pay for damages.

• Submitting a claim for damages.

• Having no insurance coverage.

What is a 'claim' in insurance terms?

• A discount on insurance premiums.

• A type of insurance policy.

• A request for money from the insurance company.

• A penalty for causing an accident.

How does no-fault insurance work?

• It only covers damages if you are at fault.

• It is only applicable in certain states.

• It compensates regardless of who is at fault.

• It requires a deductible to be paid first.

What is the role of an actuary in the insurance industry?

• To predict the likelihood of claims.

• To approve insurance claims.

• To sell insurance policies.

• To handle customer complaints.

What does bodily injury liability cover?

• Damage to your property.

• Theft of your vehicle.

• Medical expenses for injuries you cause.

• Damage to your own vehicle.

What is the purpose of uninsured/underinsured motorist protection?

• To cover damages to your vehicle.

• To pay for injuries caused by a driver with insufficient insurance.

• To reduce your insurance premiums.

• To cover rental car costs.

What does personal injury protection (PIP) cover?

• Physical injuries sustained in a vehicle, regardless of fault.

• Only injuries caused by your fault.

• Property damage caused by you.

• Theft of personal belongings from your car.

What does comprehensive insurance cover?

• Damages caused by natural disasters.

• Only theft of the vehicle.

• Repairs for damages when the vehicle is not in motion.

• Damages from collisions with other vehicles.

What is the key difference between comprehensive and collision insurance?

• Collision covers moving vehicles, comprehensive covers non-moving vehicles.

• Both cover only natural disasters.

• Both cover only theft.

• Comprehensive covers moving vehicles, collision covers parked vehicles.