Insurance
Property risks, personal risks, and liability risks
Three insurable risks
T or F -- Good grades can reduce your car insurance premium.
True
Insures property against risks such as fire and weather damage
Dwelling coverage
Covers your car in case of an accident.
Term used when eliminating a risk from happening.
Risk Avoidance
Auto, home, health and life
What are 4 types of insurance most people have?
Age, wear and tear (mileage), the fact that used items are less valuable than new ones.
What are three factors that contribute to the cash value of a vehicle.
Coverage which provides protection against losses caused by you
Liability coverage
Covers you in case a tornado drops a tree on your car.
Comprehensive
Johnnie decides to avoid a busy intersection. This is an example of what type of risk management method.
Risk Reduction
A set amount that the insured person must pay before the insurer pays benefits
What is a deductible?
Easiest way to lower the cost of collision insurance.
Increase the deductible
Covers the detached garage
Covers the passengers of the other vehicle.
Liability -- Bodily Injury
Jim Toughguy has never been in an accident. He decides he doesn't need insurance. This is an example of what type of risk management method.
Risk Assumption
These are risks that are NOT covered by the insurance policy.
What is an exclusion?
Speeding tickets, number of accidents, age, gender, location and your credit score
Things used to determine your auto insurance premium
When the item you are insuring costs more than the limits on the policy. You can purchase additional insurance called a ______.
Rider
You hit a patch of ice and lose control and hit a telephone pole. What coverage will pay for the damage to the pole?
Liability -- Property
The best risk management method when the amount of financial loss is to great.
Risk Transfer
A contract between you and your insurance complany specifying exactly what is covered
What is a policy?
Easiest way to lower the cost of liability insurance.
Lower the limits
The mailman is bitten by your dog. What coverage will pay for their injuries.
Liability
A car runs a red light. The driver does not have insurance. What coverage will pay for the damages to your car?
Uninsured motorist
Drivers education is an example of what type of risk management method?
Risk Reduction