AUTOMOBILE INSURANCE
Background: Insurance companies offer a variety of products and services to their policyholders.
Automobile insurance coverage helps to reduce financial loss resulting from car accidents
Directions: Complete the worksheet below and answer the questions that follow.
First, what are the average dollar rates for customers by age (either by month/year);
a. 18-25 _________
b. 26-40 _________
c. 41-60 _________
d. 61-80 _________
e. 80+ _________
Second, what is a deductible and what should you consider when deciding what your deductible will
be? Are there any other options available to you when choosing a car insurance plan?
1. A standard auto insurance policy is usually made up of several types of coverage. Explain
the benefits of uninsured motorist coverage. (20 points)
2. Most automobile insurance policy quotes are based on a variety of factors including how
many miles you commute to work or to school. Why do you think that this factor is
considered when an insurance company quotes a policy cost to you? (20 points)
3. What should you do if you are involved in an accident? What types of information should you
gather from others involved in the accident? (20 points)
4. List four different ways to manage risk? (20 points)
5. Discuss ways you reduce your insurance premium? (20 points)