Types of Coverage
Whoops! I crashed my car into another car. What type of insurance coverage will I need?
Collision coverage
What age groups are considered riskier drivers?
Teens and the elderly
Name 1 tip for choosing appropriate coverage.
What do insurance companies use credit scores for?
To determine likelihood you can repay loans
What affects your premiums?
They type of car you drive
Wow! A tree just fell and smashed my car! I'm going to need ______________ coverage!
Comprehensive
Do urban, suburban, or rural drivers pay more for insurance? Why?
Urban drivers typically pay more for auto insurance due to higher rates of theft, vandalism, and crashes
What is an insurance score?
An insurance score isn't a measure of how creditworthy you are but rather how "risky" you are from an auto insurance perspective, based on your creditworthiness.
What are direct sellers of insurance?
These companies sell coverage directly to you, bypassing traditional insurance agents. Since there’s no agent, there’s no commission; theoretically the savings are passed on to you.
What's the difference between driving history and driving activity?
Driving history: the fewer accidents you have, the lower your rates will be.
Driving activity: the farther you drive, the higher your rates will be because you have a higher risk of getting in a crash.
Following an accident between 2 cars, who gets medical coverage for the crash?
All medical costs that may result from a car accident are covered, regardless of who was at fault
How does mileage affect predicted risk?
Less mileage = less risk
What is group insurance?
Group insurance is an insurance that covers a defined group of people, for example the members of a society or professional association, or the employees of a particular employer
Name 5 auto insurance companies.
Progressive
QuoteWizard
State Farm
Esurance
Liberty Mutual
Allstate Insurance
USAA
Auto-Owners Insurance
The Hartford
GEICO
What's the difference between credit scores and insurance scores in determining the cost of auto insurance?
Credit scores are calculated to predict your ability to repay loans, while insurance scores are calculated to predict the likelihood of your making a claim.
What is included in bodily injury coverage? Name 3 things that are covered
Covers hospital fees and emergency care associated with the accident. Often covers legal defense fees. Compensate for loss of income due to no being able to work from the accident. Covers other party complaining of pain or distress. Lastly will also cover funeral costs.
How does marital status affect auto insurance rates?
Single people tend to crash more than married people, so being married can lower your rate
Name 3 strategies for keeping insurance costs low.
Hint: NOT including safer driving
-Shop around (Get multiple price quotes)
-Before buying a car compare insurances
-Ask for higher deductible
-Home same insurer for home and auto
-Good credit record
-Take advantage of low mileage discounts
-Seek out other loans
-Ask about group insurance
How do insurance companies figure out insurance scores?
Insurance companies will take your full credit report and run it through an algorithm to calculate an “insurance score”. An insurance score isn't a measure of how creditworthy you are but rather how "risky" you are from an auto insurance perspective, based on your creditworthiness.
What is 100/300/100?
100/300 stands for $100,000 per person for bodily injuries caused by the accident. A maximum payout of $300,000 for all claims against the Bodily Injury Liability coverage for one accident. And Another $100,000 for property damage.