Auto Insurance
Someone broke into Tony's car by smashing the back window. Which type of auto insurance coverage will help cover the cost to get the window replaced?
Comprehensive
Kelsi got a pet dog, Maggie, for whom she bought an accident and illness pet insurance policy three months ago. The dog steps on a mouse trap set out by neighbors and needs her first vet services of the year, totaling $500. Kelsi's deductible is $1000, her reimbursement rate is 75%, and her coverage limit is $15,000. How much does Kelsi pay, and how much does the insurance pay?
Kelsi - $500
Insurance - $0
Pretend your homeowners policy has a premium of $250, a deductible of $2,500, and a limit of $300,000. Your home suffers $370,000 in damages.
How much will you pay for the damages?
How much will your insurance pay?
You: $72,500
Insurance: $297,500
What is the federally funded health care program that benefits people over the age of 65?
Medicare
If you get in a car accident, what is likely to happen to the amount you pay in premiums?
premiums increase
Kade causes an auto accident on a residential street. He has liability coverage only. He causes $5000 in damage to someone else’s car, $3000 in damage to his own car, and has a maximum coverage limit of $10,000. How much will insurance pay toward fixing Kade's car? Explain.
$0 - Liability coverage doesn't cover your vehicle
You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $28,000. You have a $20,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?
$20,000
What is one of the things that renter's insurance does NOT cover?
the building you live in
other structures on the property
What is health insurance sponsored by your employer, who must contribute a minimum of 50%, while the remainder is paid by the employee?
employer health insurance
If you were to get into an accident and couldn't work for 6-7 months, would you be able to purchase short-term disability insurance tomorrow and file a claim?
No, for almost all types of insurance, you must have already started the policy and begun making premium payments before you can file any claims
What type of auto insurance pays for others' injuries or property damage when you are at fault in an accident?
Liability Coverage
Jack has an auto policy with a coverage limit of $20,000 and a deductible of $500. He gets into an accident and the damages to his car total $6,200. Fortunately, he has collision coverage. How much will Jack need to pay out-of-pocket?
$500
Your health insurance plan has a $30 copay for certain covered prescription medications. You arrive at the pharmacist and pick up your prescription (which is covered under your plan) which has a list price of $75. How much would you pay the pharmacy?
$30
What is a health care plan that balances a low monthly premium with a larger deductible and out-of-pocket costs for doctor visits and prescriptions?
High Deductible Health Plan (HDHP)
What is a federal- or state-run website with the individual health insurance plans available in a given state?
health insurance marketplace
What are some of the factors that car insurance companies considering when determining the premium amount you will pay?
how many miles a year you drive, age, driving record, your deductible
Your renter's insurance policy costs $40/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $900 TV set. How much would your insurance company pay?
$0
What type of health insurance covers individuals in low-income households?
Medicaid
Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met?
Co-insurance
How do car insurance companies make money?
Collecting more in premiums than they need to pay out each year
What type of auto insurance coverage pays for medical expenses, lost wages, and other related costs for you and your passengers after a car accident, regardless of who is at fault “no fault insurance”?
personal injury protection
Your parents tell you that on your 23rd birthday, they would like for you to get your own health insurance. You are very healthy, are not taking any prescription medicines, and generally only see your doctor for your annual physical. What type of health insurance is likely to be best for you? (hint: think regarding deductibles and premium amounts)
high deductible plan with a low monthly premium
Assuming you’re not able to change things about yourself, personally, how can you reduce the amount you pay for health insurance premiums?
See if you qualify for Medicaid, Medicare, or subsidies on the marketplace
Enroll in your employer’s group plan, knowing they pay for 50% or more of your premium
Choose a high deductible plan
Choose a lower tier plan (bronze or silver), so the actuarial value of the plan is lower
Comparison shop on the Marketplace to make sure you're getting the best rates you can
What is a strategy where multiple people or entities combine their risks into a large group to share the financial burden making losses more predictable and manageable for everyone? This is done with insurance.
risk pooling
Why do insurance companies charge more if they think you are a "high-risk" customer?
Insurance companies charge more if they believe you are a “high risk” customer because you are more likely to file claims and require the insurance company to pay on your behalf. This in turn will most likely cost the insurance companies more money.