What is Insurance?

Protection from almost anything that can happen

Insurance is based on the concept of risk and loss

Peace of mind knowing that you will not loose everything

How does Insurance work?

1. Pay Premium

Each month/ year you have a set amount that you pay the Insurance Company

(based on the type of insurance you get)

2. Need to use your Insurance

You will file a claim with your Insurance company.

3. You may need to pay a “Deductable”

Some Insurance companies might make you pay a certain amount before you are able to collect

– the amount you must pay is called the Deductable.

4. The Insurance company pays…• Sometimes this can take a while

• They may have you pay the bill and reimburse you

• They might need proof of your replacement

What are some things that I can Insure?

• House• Car• Life• Possessions• Animals• Job

and a lot more…

How do they decide your rate?Determining your insurance premiums is based

on several things…AgeGenderMarital StatusCondition of what you are InsuringDriving record/ Credit HistoryGrades in schoolLocation

Trivia Question

When talking about car insurance..

Who pays the highest rates? (meaning the are the most risky?)

Teenage male drivers