1. It is the law.
2.  Your car and you to be covered under the auto 
insurance of your parents.
3.  Someone else's property damage and someone 
else's bodily injury.
4.  a) Property damage insurance to cover $50,000 
to $100,000 or more per accident.
  b) Bodily injury insurance to cover $5,000 to 
$100,000 or more per person.
  c) More money.
5.  $50,000 maximum coverage for each person 
and $100,000 maximum coverage each acci -
dent.
6.  Collision insurance pays for damages to your 
car from an accident.
7.  Pays if your car is stolen or damaged by some -
thing other than an accident (such as flood or 
vandalism).
8.  Deductible is the amount you must pay before 
the insurance kicks in and pays the rest.
9.  You will pay $500 and auto insurance will pay 
$300.
10.  Lowers the premium.
11.  To save money; Care is too old to repair.
12.  a) Uninsured motorist auto insurance pays for 
damages to your car after an accident if the 
other driver does not have auto insurance.
13.  a) 17.
  b) No fault insurance pays for you and your 
passengers' medical bills up to a certain amount 
of money no matter who caused the accident.
  c) The other driver's auto insurance will pay the 
extra medical costs.
  d) You need to sue the other driver in court.
14.  Student's opinion and reason for opinion for (a) 
to (e).
15.  a) Car crashes.
  b) Distractions such as car radio, cell phone, 
and friends talking.
Your Money: Auto Insurance
QUICK CHECK ANSWERS:	
16.  a) 16 years old
  b) Gets lower
  c) Student's opinion.
  d) Reason for opinion.
Auto World Insurance Company Worksheet
Event #1
  a) Uninsured Motorist Insurance.
  b) $2,350.
Event #2
  a)  Comprehensive Auto Insurance.
  b) $1,360 paid by insurance.  Benjamin needs 
to pay $1,000 deductible.
Event #3
  a) Liability Property Damage Insurance
  b) $3,500.
  c) Medical auto insurance (or Liability 
Bodily Injury) - could be either.
  d) $1,600.
  e) Medical Auto Insurance
  f) $1,000.
  g) Collision Auto Insurance
  h) $1,250 paid by insurance since car is only 
worth $2,000.  Jason needs to pay $750 de -
ductible.