Math Money Management – Chapter 8 Lesson Plans
Section 8.4 –Automobile Insurance
Enduring Understandings: The student shall be able to:
- Use tables to compute the annual premium for automobile insurance.
Warm up/Opener:
GHSGT problems
Skills
Standards:
- Topic: Purchasing
Standard: Calculates costs related to buying and owning a car, including various types of insurance.
Essential Questions: Why do we need automobile insurance?
Activities:
Handout and go over the “Georgia Auto Insurance Basics”.
New Vocabulary:
Age Group: A category to which an automobile is assigned by an insurance company depending on its age. Age group affects the base premium.
Annual Premium: The amount you pay each year for insurance coverage.
Base Premium: Base premium is the portion of your annual automobile insurance premium determined by the amount of coverage you want, the age group of your car, and the insurance rating group.
Bodily Injury Insurance: Insurance that protects you against financial loss if your automobile causes personal injury to someone.
Comprehensive Insurance: Insurance that protects you form loss of or damage to your automobile caused by fire, vandalism, theft, and so on.
Collision Insurance: Insurance to pay for repairs to your automobile if it is involved in an accident.
Deductible Clause: A clause in an insurance policy stating that the insured must pay a portion of any repair bell, or a portion of the amount not covered by hospital or surgical-medical insurance.
Driver-rating Factor: A number assigned by an insurance company to each driver of an automobile to reflect the driver’s age, marital status, and so on. A higher driver-rating factor results in a higher annual premium.
Insurance-rating Group: A category to which an insurance company assigns an automobile depending on its size and value. The insurance-rating group affects the base premium.
Liability Insurance: Insurance that protects you against financial losses if your car is involved in an accident. Liability insurance included bodily injury insurance and property damage insurance.
Property Damage Insurance:Insurance that protects you against financial loss if your automobile damages the property of other people.
Annual Base Premium = Liability Premium + Comprehensive Premium + Collision Premium
Annual Premium = Annual Base Premium X Driver-Rating Factor
BOOK: Liability insurance, which includes bodily injury insurance and property damage insurance, protects you against financial losses of your car is involved in an accident. Bodily injury limits of 25.100 mean that he insurance company will pay up to $25,000 to any one person injured an up to $100,000 if more than one person is injured. Property damage insurance protects you against financial loss if your automobile damages the property of others.
Comprehensive insurance on your automobile protects you from losses due to fire, vandalism, theft, and so on. Collision insurance will pay to repair the damage to your automobile if it is involved in an accident. Either policy may be written with a deductible clause. A $50-deductible clause means that you pay the first $50 of the repair bill. The annual base premium is determined by the amount of insurance you want, the age group of your car, and the insurance-rating group. The insurance-rating group depends on the size and value of your car.
The annual premium is the amount you pay each year for insurance coverage. Your annual premium depends on the base premium and your driver-rating factor. The base premium depends on the amount of coverage you want. The driver-rating factor depends on your age, marital status, the amount you drive each week, and so non. IF several people drive your car, the highest driver-rating factor among those who drive your car is used to determine the annual premium.
Insurance companies use tables to determine your base premium.
When shopping for insurance:
- Shop around. Different companies consider different cars and different drives differently. One may consider your car choice a sports car and another may not. They have different price breaks for different engine sizes, etc.
- Do not lie. If you have been in an accident, tell them. You will be in trouble if they check and find out you did not tell the truth.
- A higher deductable will save you premium money.
- Be sure to get un-insured motorist coverage.
- You may want to consider not having collision insurance if your car is old. The car may not be worth the cost of the insurance.
Assessments:
Do some guided skills.
CW: pg 247, # 1 - 4
HW: pg. 245, # 2 – 18 even (9)