5.4 AUTO INSURANCE. Insurance is a contract between the driver and insurance company. Liable:...
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Transcript of 5.4 AUTO INSURANCE. Insurance is a contract between the driver and insurance company. Liable:...
Insurance is a contract between the driver and insurance company.
Liable: responsible. Claim: a request for moneyPremium: the fee for insuranceSurcharge: extra feeDeductible: amount you pay before insurance pays
vocabulary
1. Liability: covers the other car & people.
Bodily Injury (BI): covers bodily injury. Your fault? You are responsible for paying the medical expenses of anyone injured.
Property Damage (PD): covers damage to other peoples’ property. Examples: another car, flower bed, fence, telephone pole, etc.
Types of auto insurance
2. Uninsured/underinsured Motorist Protection (UMP)
Covers you and your passengers caused by a driver who has no insurance or not enough insurance.
Types of insurance
3. Personal Injury Protection (PIP) Pays for physical injuries to you or your passengers
regardless of who is at fault.
4. Comprehensive Insurance Covers the repair or replacement of parts of your car
damaged by vandalism, fire, flood, wind, earthquakes, riots, hail, trees, and other disasters.
5. Collision Insurance Pays you for the repair or replacement of your car if it’s
damaged in a crash with another car or object, no matter who is at fault.
Types of Auto insurance
6. Car Rental Insurance Pays you for part of the cost
of a rented car if your car is disabled bcs of a crash
7. Emergency Road Service Insurance
Pays for towing or road service when your car breaks down. Gas, oil, parts, and labor are not covered.
Types of insurance
Insurance limits – the maximum amount that the insurance company will pay per accident
Listed as 50/100The 1st number is the amount they’ll pay per person (per accident)The 2nd number is the total amount they’ll pay for the accident
Sometimes listed as 50/100/50The 3rd number is amount for property damage
You can set your limits in your insurance contract. Higher limits = higher premiums
LImits