Me, Myself, My Money
Instructor’s Guide
Keeping Your Wheels
– and You – Rolling!
Learning Objectives
Learning Standards
(grades 9-12):
■ Business and Economics
Students will:
■ Recognize the two basic and primary types and amounts of automobile
insurance and the specific coverage provided under each.
■ Discuss the terminology used in an automobile insurance policy.
■ In a given situation, identify the insurance provided in a policy and indicate the coverage that
will apply, determine the amount of insurance coverage provided, and calculate the amount
the insurance company will pay and the amount the insured will pay.
• Students identify risks in life and
how to gain protection against the
consequences of risk. (National
Business Education Association –
Economic & Personal Finance)
Presentation Suggestions
• Students identify the type of
Use “Fast Facts” and “Alphabet Soup” to:
insurance associated with different
types of risk. (National Business
Education Association –
Economics & Personal Finance)
■
■ Mathematics
• Students understand how
mathematical ideas interconnect
and build on one another to
produce a coherent whole, and
recognize and apply mathematics
in contexts outside of mathematics.
(National Council of Teachers
of Mathematics)
■
■
■
■
■
■
Explain that of all the expenses associated with owning (or leasing) and operating a car,
such as insurance, gas, maintenance (such as periodic service and repairs), and abiding by
state regulations, insurance is often considered the most confusing, but it is very important
because it protects people against potentially large financial losses.
Note that Hartford is sometimes called “The Insurance City” because it has a large
concentration of insurance companies.
State the two basic and primary types of automobile insurance – bodily injury and
property damage.
Explain and discuss the coverage provided under each of the two basic types of automobile
insurance: Bodily injury insurance protects against bodily injury liability and provides medical
payments coverage; property damage insurance protects against physical damage liability
and includes collision insurance and comprehensive (physical damage) insurance.
Discuss the factors that affect the cost of insurance (the premium).
Explain various terms associated with automobile insurance.
Complete the activity – Maria Andretti – with the class.
Me, Myself, My Money
Keeping Your Wheels – and You – Rolling! Instructor’s Guide
Maria Andretti
Maria Andretti purchased an automobile insurance policy through an insurance agent at
the Wilson Insurance Agency. Her policy includes the following:
• Bodily injury liability and property damage liability,
stated as “100/300/50”
• Collision insurance with a deductible of $500
• Comprehensive insurance with a deductible of $250
Assume Maria is driving her car with a friend and is involved in an accident with another
driver, who also has a passenger in the car. Everyone – drivers and passengers – sustain
injuries and require medical care.
Teaching note:
“100/300/50” means Maria has insurance against: (1) bodily injury liability, which will
pay a maximum of $100,000 to any one person and $300,000 for any one accident, and
(2) property damage liability, which will pay a maximum of $50,000 for damage caused
to another’s auto.
1. Does Maria have insurance to pay for the injuries caused to the driver and passenger in the other car?
Yes; bodily injury liability insurance covers the cost of injuries sustained by people in the other auto.
2. Does Maria have insurance to pay for her injuries and those of her friend who was also in the car?
Yes; the medical payments coverage section (of the bodily injury insurance) covers the cost of injuries
sustained by the insured and other people in the insured’s auto.
3. Will Maria’s insurance protect her against any lawsuits and legal expenses if the people in the other car or the friend in her
car bring a lawsuit against her?
Yes; bodily injury liability insurance protects the insured from financial loss from lawsuits and
other legal expenses incurred as a result of an accident.
4. What is the maximum amount the insurance company will pay on Maria’s behalf for any one person injured in the accident?
$100,000. Although the policy (100/300) states that is will pay a maximum of $300,000 for any one accident,
it also states that it will only pay a maximum of $100,000 per person per accident.
(continued on next page)
Me, Myself, My Money
Keeping Your Wheels – and You – Rolling! Instructor’s Guide
Maria Andretti
(continued)
5. If each person – drivers and passengers – sustain injuries that total $80,000 per person, what is the maximum the insurance
company will pay on Maria’s behalf?
$300,000. Although the policy (100/300) states that is will pay a maximum of $100,000 per person per accident,
it also states that it will only pay a maximum of $300,000 for any one accident.
6. Does Maria have insurance to pay for the damage caused to the other car?
Yes; property damage liability insurance covers the cost of damage caused to others’ property.
7. Does Maria have insurance to pay for the damage caused to her car?
Yes; collision insurance covers the cost of damage caused to the insured’s auto, regardless of who caused the accident.
8. If the damage to the other car is estimated at $1,250 and the damage to Maria’s car is estimated at $1,250, what amount will
Maria’s insurance company pay her and what amount will it pay the driver of the other car?
Maria’s insurance company will pay her $750. Maria is covered by collision insurance; however, the policy has a
$500 deductible. Therefore, Maria must pay the first $500 and the insurance will pay the remaining amount, $750.
Maria’s insurance company will pay the other driver $1,250. Maria is covered by property damage liability insurance,
which does not have a deductible. (Note that according to Maria’s insurance policy, the insurance company will pay
a maximum of $50,000 for property damage liability.)
9. What type of insurance does Maria have that will cover the cost of damage to her automobile from events other than
an accident, such as theft?
Comprehensive (physical damage) insurance.
10. If Maria’s car is damaged due to theft, and CDs and other items are stolen from Maria’s car, what amount will the insurance
company pay Maria if the damage to her car is estimated at $400 and the stolen CDs and other valuables are valued at $300?
Maria’s insurance company will pay her $150. Maria is covered by comprehensive insurance; however, the policy
has a $250 deductible, so she must pay the first $250 and the insurance company will pay the remaining amount, $150.
Automobile insurance does not cover the contents in the car, so Maria will not receive money from the insurance
company for the stolen CDs and other valuables.