Understanding Car Insurance: Paving the Way
"Understanding Car Insurance: Paving the Way" is the seventh video in the Federal Reserve Bank of St. Louis series, "No-Frills Money Skills." This episode uses a radio talk show format to explain various aspects of car insurance. From the responses to questions from callers, students learn several key concepts and terms related to car insurance. The content for these videos was reviewed by members of the Missouri Insurance Education Foundation.
Watch all segments of this episode:
- • Segment 1: Premiums and How Coverage Works
In Segment 1, students learn that people pay premiums to insurance companies to buy protection from financial loss. Two callers’ questions are used to discuss liability coverage, including its legal aspects, and how typical car insurance coverage works.
- • Segment 2: Losses, Deductibles and Types of Coverage
In Segment 2, students learn about who is responsible for losses, how a deductible is applied to a covered loss, and different types of coverage available on car insurance policies, including comprehensive, collision, and medical payments coverage.
- • Segment 3: Applying for Insurance Coverage
In the final segment, students learn about the insurance application and underwriting process. The segment includes a description of some of the personal and vehicle information that insurance companies use to establish rates and determine eligibility.