Insurance Basics
This is the amount you pay each month for insurance.
What is an insurance premium?
This coverage pays for damage from a crash.
What is collision insurance?
At the end of this, you return or buy the car.
What is a lease?
You should do this before going to a dealership.
What is research vehicles?
This is a monthly cost of owning a vehicle besides the payment.
What is fuel?
This is the amount you pay before insurance covers costs.
What is a deductible?
This add-on includes towing and flat tire help.
What is roadside assistance?
This is an advantage of buying a car.
What is you own the car / no payments after payoff?
This helps you evaluate comfort and performance before buying.
What is a test drive?
Recommended percentage of net income for transportation.
What is 10–15%?
This type of insurance covers damage you cause to others.
What is liability insurance?
This coverage pays for a rental car after an accident.
What is rental reimbursement?
This is a disadvantage of leasing.
What are mileage limits?
Avoid discussing this early during negotiations.
What is a trade-in?
This happens to your loan when you trade in a vehicle.
What is the loan amount decreases?
This coverage protects you if the other driver has no insurance.
What is uninsured motorist coverage?
This covers the difference between what you owe and what your car is worth.
What is gap insurance?
This loan is arranged through a dealership.
What is a dealer loan?
This is the legal document for purchasing a car.
What is a sales agreement?
If damage is less than your deductible, this happens.
What is you pay all costs?
Two or more factors that can affect your insurance premium.
What are driving record, car type, age, location, etc.?
This type of insurance covers non-accident damage like theft or weather.
What is comprehensive insurance?
Explain one reason someone might choose leasing over buying.
What is lower monthly payments or driving newer cars?
Why should you avoid showing emotion when negotiating?
What is it weakens your negotiation position?
What could happen if you exceed the recommended income ratio?
What is financial strain, debt, or inability to afford payments?