Insurance Basics
This is a contract between you and the insurance company.
What is car insurance?
The most important thing to do before buying a car and signing a contract.
What is research?
The car manufacturer's promise to help cover repairs for a set amount of time.
What is a warranty?
An offer the dealership gives you for a car.
What is a quote?
The maximum amount an insurance company will pay for damage caused in an accident.
What is coverage limit?
Seizure of the car by the bank.
What is repossession?
What is a Bait and Switch?
The most expensive annual cost to operate a car annually.
What is fuel?
The price that appears on the window of the car.
What is the sticker price?
The car insurance that covers only the cost of the other driver's injuries or damage.
What is Liability Insurance?
Money and things you own.
What are assets?
When the dealer tries to sneak a warranty into the terms of your deal.
What is a Forced Warranty?
When the value of a car goes down due to wear and tear over time.
What is Depreciation?
Three websites for car research are True Car, Kelley Blue Book, and ____________.
The car insurance that covers damage caused to your car if you cause the accident.
What is collision coverage?
The cost of your insurance policy.
What is a premium?
Something highly profitable for car dealers.
What are "extras"?
The percent value a new car loses the second it is driven off the lot.
What is 10-20%?
The price the dealership paid for the car minus any incentives they received.
What is the Dealer's Invoice Price?
The two types of liability insurance.
What are bodily injury coverage and property damage coverage?
Pre-determined amount of money that you agree to pay before the insurance company will pay a claim.
What is a deductible?
The most common sales tactic used by car dealers.
A car costs $22,000. You put down $2,000 and finance the rest with a 5-year loan at 6% interest. Over the life of the loan, you will pay about $3,500 in interest. What is the total cost of the car, including interest?
What is $22,500?
The real name for MSRP.
What is the Manufacturer's Suggested Retail Price?
The nickname for Personal Injury Protection (PIP).
What is no-fault insurance?