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WorksheetsUnit 5: Insurance
Total questions: 25
Worksheet time: 13mins
Which of the following does NOT effect the cost of your car insurance?
Your Age
Gender
Driving Record
Drivers Test Score
Which of the following is a way to lower your insurance premium?
have a good driving record
be involved in sports
have a parent with you at all times
buy a sports car
Car B is not insured, what is one way Car A can have the damages paid for.
If car A has liability coverage
If car A has Under-insured Motorist coverage
If car A has Uninsured Motorists coverage
If car A has Comprehensive coverage
What kind of insurance would cover you if you hit a deer? The only damage is to your car.
Liability
Bodily Injury
Comprehensive
None
Who needs auto insurance?
Nobody
People that think they will get into an accident.
All people who drive cars.
People who can afford it.
A payment made monthly, twice a year, or yearly, for an insurance policy.
Premium
Copay
Tax
Benefit
Chance or possibility of injury, damage, or loss that someone may want an insurance policy to cover.
Debt
Risk
Premium
Agent
The amount of money an insurance policy holder must pay on a claim before the insurance company begins to pay. The higher this is, will usually result in a lower premium.
Premium
Claim
Deductible
Policy
What is Insurance?
A contract that specifies what risks are covered and how much will be payed for losses
The application given to a prospective insured.
the premium amount paid at the time of application
What is an insurance premium?
An added cost you pay in order to receive higher-quality services
Your monthly payment to your insurer, regardless of whether you use any services
A list of the procedures covered by your insurance carrier
When setting your premium, your car insurance company may consider each of the following EXCEPT...
Your height
Your age
Your driving record
Someone broke into Sam’s car by smashing the passenger window. Which type of auto insurance coverage will help cover the cost to get the window replaced?
Bodily injury liability
Property liability
Comprehensive
You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $58,000. You have a $75,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?
$0
$58,000
$75,000
Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages to his car total $6,200. Fortunately, he has collision coverage. How much will Frank need to pay out-of-pocket?
$0
$1,000
$6,200
What type of auto insurance are you required to carry in almost every state (49 out of 50)?
Insurance if you cause injury to another person
Insurance if you damage your own property
Insurance if you cause injury to yourself
In general, how do insurance companies decide how much to charge an individual for their monthly premiums?
The company assesses the individual's risk factors and assigns higher premiums to higher risk individuals
The company increases or decreases premium rates based on the stock market
The company charges the same premium for every individual eligible for coverage
A standard renters insurance policy would cover each of the following EXCEPT…
A small TV and some sneakers, stolen in a robbery
A week of hotel reservations when the tenant has to move out due to fire damage
A new window when a baseball breaks the original one
Which of the following statements is TRUE about auto insurance premiums?
If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase
If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease
Auto insurance premiums are a fixed price across all insurance companies
Insurance companies make money by...
Collecting money from the government
Keeping costs low with minimal advertising
Collecting more in premiums than they need to pay out each year
