1. Warm-up: Insurance and Risk
Describe a time you or someone you know took a risk.

2. Insurance and Risk Insurance: protection against loss
E.g. You pay $70 a month for car insurance. If you have an accident, your insurance pays for most of the damage.

3. Insurance and Risk
Deductible—the amount you have to pay before insurance kicks in
E.g. Before my auto insurance kicks in, I have to pay a $500 deductible

4. Insurance and Risk
The more risk, the higher insurance payments (called premiums) you pay

5. Automobile Insurance What affects the cost of your car insurance? Age
Gender
Marital Status
Type of Car
Mileage
Location
Driving Record
Grades

6. Automobile Insurance
State requires you have auto insurance or else you have to pay a fine

7. Collision Insurance v. Comprehensive Car Insurance
Collision insurance pays if you collide with another car, an object, etc.

8. Collision Insurance v. Comprehensive Car Insurance
Comprehensive Car Insurance pays for everything other than damage caused by collision
Natural disasters: storms, tornadoes, hurricanes, earthquakes, hailstorms;
Fire, civil commotions, explosions;
Vandalism and theft
Damage from impacts with animals (deer, etc.);
Broken / shattered windows and windshield;
Falling objects
Acts of God

9. Automobile Insurance How to reduce the cost of car insurance
Increase the deductible

10. Automobile Insurance How to reduce the cost of car insurance
Cancel collision insurance

11. Automobile Insurance How to reduce the cost of car insurance
Garage the car

12. Automobile Insurance How to reduce the cost of car insurance
Install security alarm

13. Automobile Insurance How to reduce the cost of car insurance
Keep a good driving record

14. Automobile Insurance How to reduce the cost of car insurance
Avoid submitting small claims