insurance basics
What is insurance?
A protection against financial loss
Name one of the five main auto insurance coverages?
Liability
What is a co-payment?
a small fee you pay at a visit.
What is a replacement value?
Pays to replace an item brand new
Does Florida require bodily injury liability for everyone?
No
What is a premium?
The amount you pay for insurance
Name another main auto insurance coverage?
Collision
what is a co-insurance?
You pay part, insurance pays part after deductible
What is actual cash value?
Pays value after depreciation
How much PIP does Florida require?
$10,000
What is deductible?
Money you pay first before insurance helps
Name the third main auto insurance coverag?
Comprehensive
What is an out-of-pocket maximum?
The most you pay in a year
Helps you find and choose insurance
What two coverages are required in Florida?
PIP and property damage liability
What is a limit in insurance?
The maximum amount insurance will pay
What are the last two of the five main coverages?
PIP and Uninsured/underinsured motorist
HMO-must stay in network PPO-can go out of network
What does actuary do?
Calculates risk and helps set prices
Why is having only Florida’s minimum insurance risky?
It may not cover big accidents, and you pay the rest.
You crash your bike and file a claim. You must pay your deductible, and your insurance pays up to the limit. What three terms does this show?
Deductible, claim, limit.
Give five factors that determine auto insurance rates?
Age, driving record, car type, location, miles driven.
How long can you stay on your parents plan, and where do most ameri get insurance?
Until age 26, most get it from their job.
You apply for insurance. Someone reviews your risk and decides your premium. Who is doing this job?
An underwriter
Which type of insurance would you use to cover medical bills if you get injured in a car accident while renting an apartment?
Health insurance covers medical bill, auto insurance covers the car and acciden-related costs, and renters insurance can help protect your belongings in the apartment.