Buying a Vehicle
______ is the process of getting a new- or used-car loan prearranged through your bank or credit union.
Preapproval
The decline in value of a vehicle due to normal wear and tear is called _______.
Depreciation
_______ is a method of spreading individual risk among a large group of people to make losses more affordable for all.
Insurance
A(n) _______ is the chance of loss that may occur when your errors or actions result in injuries to others or damages to their property.
_______ insurance protects property owners from property and liability risks.
Homeowner
_______ coverage is auto insurance that protects your own car against damage from accidents or vehicle overturning.
Collision
The _______ is the price shown on the tag in the car’s window; it is the manufacturer’s suggested retail price.
Sticker Price
Rare cars and very old vehicles in excellent condition may experience_______, or an increase in value.
Appreciation
A(n) _______ is the specified amount of a loss that the insured must pay.
Deductible
_______ may result in gain or loss because of changing economic conditions.
Economic risk
_______ coverage is insurance to protect against claims for bodily injury to another person or damage to another person’s property.
Liability
_______ coverage is auto insurance that protects you from damage to your car from causes other than collision or vehicle overturning.
Comprehensive
A(n) ______ is a simple road test where you drive the car for several miles in typical traffic and road conditions.
Test Drive
A(n) _______ lists the legal owner and the registered owner of a vehicle.
Car title
A fee, called the _______, is paid at regular intervals by the insurance policyholder.
Fee
_______ is the likelihood that something will or will not happen.
uncertainty
A(n) _______ clause requires policyholders to insure their building for a stated percentage of its replacement value in order to receive full reimbursement for a loss
Coinsurance
_______ is auto insurance that pays for medical, hospital, and funeral costs of the insured and his or her family and passengers, regardless of fault.
Personal Injury Protection (PIP)
A car’s _______ is an alphanumeric number that identifies it.
_______ protect consumers from the consequences of buying a defective car.
Lemon Laws
A fee, called the _______, is paid at regular intervals by the insurance policyholder.
Premium
_______ is the chance of loss involving income and standard of living.
Personal Risk
A(n) _______ is any violation of the law committed by the driver of a vehicle while it is in motion.
Moving Violation
_______ coverage is auto insurance that pays for your injuries when the other driver is legally liable but unable to pay
uninsured/underinsured motorist
A(n) _______ is a written statement about a product or service’s qualities or performance that the seller assures are true.
warranty
The Federal Trade Commission requires dealers to place a sticker, called the _______, on all used cars they offer for sale.
Buyer's Guide
_______ is the process of putting the policyholder back in the same financial condition he or she was in before the loss occurred
indemnification
The chance of loss or harm to personal or real property is called _______.
Property risk
A _________ is the amount of money you pay out of pocket before the insurance company pays.
deductible
_______ is auto insurance in which drivers receive reimbursement for their expenses from their own insurer, regardless of who caused the accident.
No-fault insurance