7.4: Insurance

• You are required to have auto insurance before registering a new car.

• The monthly payments to the insurance companies, called insurance premiums, can be a significant part of your expenses.

• These insurance premiums vary from person to person and young people in particular, can have high insurance payments.

• Age

• Car Make and Model

• Yearly Mileage

• Credit History

• Driving Record

• Marital Status

• Gender

• Liability

• Accident Benefits

• Uninsured/Underinsured Driver Protection

• Direct Compensation

• Comprehensive Coverage

• Collision Cover

• Transportation Replacement Coverage/Depreciation Coverage

• Required by law

• If you are partially or fully at fault, it covers other people's vehicles and if someone else is injured or killed.

• Required by law

• If you are injured or killed, insurance covers income replacement or medical costs

• Required by law

• Pays for damage to your vehicle if you are partially at fault or another insured driver is fully at-fault

• Not required by law

• Pays for damage to your vehicle caused by theft, vandalism, or acts of god

• Not required by law

• Pays for damage to your vehicle if you are fully at-fault for the accident

• Not required by law

• Covers your transportation costs while your vehicle is being repaired

• Not required by law

• Replaces your vehicle if it is stolen or damaged beyond repair

• Required by law

• If an unknown driver (hit and run) or uninsured driver is at fault, it pays for damage to your vehicle (if the driver is identified)

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