Everyone pays a different amount for auto insurance. Watch this video to learn five key factors that influence how much you’ll pay. Then, answer the questions.
Complete the sentences in the chart as you watch.
Can you think of any other factors, not listed above, that could influence your auto insurance premiums?
In every auto accident, after asking, “Is everyone safe?”, one of the most important questions you may want answered is, “Who pays?” Understanding your deductible and coverage limits is crucial to determining that. Review the explanations and examples in this article, and then determine “Who pays?” in these sample scenarios.
Important Note: This resource reflects this information but does not directly address it: For auto insurance, if the insurance claim is a liability, where the insured driver has harmed another person and/or damaged another person’s property, the insured driver does NOT owe a deductible; insurance covers the entire bill up to the coverage limit. If the insurance claim is to replace or repair the insured driver’s own property, the insured driver WILL typically owe a deductible.
Another component of having auto insurance is knowing what your state's requirements are. Each state requires drivers to carry different levels of insurance to be legally allowed to drive. Review the information and answer the following questions.
Which state have the most strict requirements?
If you could choose, would you prefer to live in a state with strict or lenient requirements for auto insurance coverage? Why?
Almost every single state requires drivers to have liability coverage. Why do you think that is the case?
Do a quick search to find out:
Expected value can help you make decisions when the future is uncertain. When you buy car insurance, you need to choose the types of coverage and the amount of coverage that you want. Both of these decisions involve weighing the risks of car accidents and other expenses with the cost of the coverage. Read Lexi’s profile below and answer the questions to help them decide how much liability coverage to purchase.
Which plan should Lexi choose? Explain your reasoning.
What GPA is required to earn a Good Student Discount on an auto insurance policy?
Why do you think that most automobile insurers offer discounts based on good grades?
What else might you want to know about a high school student before providing them with an auto insurance policy?
How long will most driving violations affect your car insurance rates?
What driving violations do you think are most common among teen drivers?
Why do you think that insurance companies increase the cost of auto insurance for those who have driving violations for so many years after the violation?
Does this seem fair to you? Why or why not?