Automobile Insurance: The Basics

Overview

Automobile Insurance: The Basics is a short, 30 minute lesson designed to cover the fundamentals of automobile insurance. Students will understand that accidents happen more than most people think and that they are very expensive when they do happen. The lesson covers what automobile insurance is, how insurance companies classify risk, what determines premium amounts, and finally what the students can do to reduce risks.

Objectives

The students will:

Define basic automobile insurance terms

Identify what determines automobile insurance premiums

Recognize what they can do to reduce risk

Time Required

30 Minutes

Materials:

To download the materials, right click and 'save target as' (PC) or hold down the option key and click the link (Mac).

 Risk Responsibility Reality video clip

 Power Point Presentation

 Vocabulary Worksheet

 Vocabulary Worksheet - Key

Procedures:

Download/View the lesson procedures.

Assessment:

Have students complete the vocabulary worksheet on automobile insurance

Resources:

According to the National Safety Council, there are more than 12 million motor vehicle accidents annually

The US Department of Transportation estimates that the typical driver will have a near automobile accident one or two times per month and will be in a collision of some type on average of every 6 years

The National Center for Statistics and Analysis reports crashes are the leading cause of death for ages 3-33

Crews, Tana B. Fundamentals of Insurance. Dubuque: South-Western, 2003