Vocabulary
an agreement between you and your insurance company that can cover your car, damages you cause if you hit someone else, or other events for you
auto(car) insurance
this covers damages to your car from events beyond your control(theft,animals,weather,etc)
comprehensive
this coverage will help so that you are never stranded on the side of the road
roadside assistance
If you have comprehensive insurance and hit a deer, your deductible is $200 and your total repairs will cost $950, how much will you have to pay out of your pocket?
$200
this covers accidents with other cars and objects no matter who is at fault
collision
this is the amount you pay out of your own pocket before the insurance steps in and helps cover things
deductible
this pays for damages/injuries YOU cause
liability
this coverage will pay rental car fees while your car is being repaired
rental car
If you have collision insurance and you hit a mailbox with your car, you have a deductible of $350 and the repairs will cost $600, how much of the cost will the insurance company pay?
$250
any time a car causes injuries, these coverages can help cover medical bills of you or a passenger
medical/PIP(personal injury protection)
the cost of your insurance policy
premium
this will pay for any injuries or any wages lost due to not being able to work because of your injuries
uninsured motorist bodily insurance
this coverage will help you pay off your car loan if you total your car
gap coverage
If you total your car and do not have gap insurance but have $2000 left on your loan for the car, how much of this loan will the insurance pay?
$0(you do not have this coverage, you are responsible for the remaining loan amount)
if a driver without insurance damages your vehicle, this type of coverage will kick in
uninsured motorist damage