Key Concepts and Terms
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Select the car to review auto insurance key terms and concepts.
Renters insurance
Auto Insurance
Directions: Turn to page 3 in your workbook. You will use the auto terms and definitions below to help you while completing the word association activity.
Claim: The formal request to an insurer for payment under the terms of your policy. Premium: The full amount the policyholder will pay for the policy term. Different payment frequencies are available.
Deductible: The amount subtracted from an insurance payout that you are responsible for.
Liability: A legal obligation to reimburse others for damage or injury that you cause. If the customer is at fault in an accident, bodily injury liability coverage will pay for medical expenses for others injured in the accident. These expenses may also include lost wages and litigation costs. Property damage liability coverage pays to repair or replace any person’s vehicle or property (such as a fence or light pole) if a customer damages it during an accident.
Comprehensive Coverage: Coverage against theft and damage caused by an incident other than a collision, such as fire, vandalism, hail, flood, falling rocks, and other events.
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Collision Coverage: Optional coverage that reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object. Adjuster: An insurance company employee or contractor who reviews the damages and injuries caused by an accident and okays claims payments.Defensive Driving: Driving in a way that reduces the chance of an accident. Defensive Driving: Driving in a way that reduces the chance of an accident. Uninsured Motorist Coverage (UM): Provides bodily injury coverage for you, family members, or occupants of another driver who is un-identified (hit and run) or has no liability insurance at all. Under-Insured Motorist (UIM): Provides bodily injury coverage for you, family members, or occupants by another driver who does not have enough insurance to cover your bodily injury claims. Uninsured Motorist Property Damage (UMPD): Provides property damage coverage for a covered vehicle and its contents including loss of use, if damaged by uninsured driver or hit and run vehicle.
Directions: Turn to page 4 in your workbook. You will use the auto terms and definitions below to help you while completing the word association activity.
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Med Pay: Medical payments pay for you in and anyone in your vehicle for medical expenses suffered in a car accident, regardless of fault up to the limit you purchased per person.
Personal Injury Protection (PIP): In certain states, car accident victims are directly reimbursed by their own insurance companies for reasonable and customary medical and hospital expenses, potential loss of income, funeral expenses, or paying someone to perform the tasks you can’t perform due to your injuries from an accident. PIP covers the policy holders, family members and other people in the insured’s vehicle, or as a pedestrian, regardless of who is at fault in an accident.
Towing and Labor: Covers the cost of having the customer’s vehicle towed, roadside assistance up to the specified limits.
Rental Reimbursement: This optional coverage helps pay for a rental vehicle when a customer’s vehicle needs repairs after an accident, up to the policy limits.
After completing pages 3-4 in your workbook, select the Next button to go back to the main menu.
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Select the house icon to begin learning about renters insurance terminology.
Renters insurance
Auto Insurance
Directions: Turn to page 5 in your workbook. You will use the renters insurance terms and definitions below to help you while completing the word association activity.
Personal Property: Covers your clothing, furniture, electronics, and other belongings. Loss of use: Pays for hotel stays, restaurant meals, or other expenses if you have to live elsewhere while your home undergoes covered repairs.
Liability: Pays out if you’re responsible for injuries to other people or damage to their property.
Medical Payments: Covers injuries to other people in your home, regardless of fault.
Claim: Insurance provider will reimburse you for damaged items to cover your expenses if you’re forced to move out, and make payments to injured parties who file a liability claim against you.
Premium: The cost you pay to keep a renter’s insurance policy active.
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