Choosing Your Car Insurance
(8 Students)
Activity Description
In this comprehensive worksheet, students will engage in selecting an auto insurance plan for their car and evaluating its benefits over a simulated period of four years. This activity will help students understand the different levels of coverage provided by various insurance plans and the financial impact of their choices.
Activities:
- Plan Selection: Students will choose an insurance plan for their car - basic, standard, deluxe, or platinum, considering their coverage needs and budget.
- Add-Ons: Students can add optional coverages to their chosen plan, impacting the annual premium.
- Event Simulation: Over a simulated period of four years, students will be presented with a series of events affecting their car (e.g., accidents, theft, natural disasters).
- Coverage Application: For each event, students will identify which type of coverage helps cover the incident and calculate the amount paid by insurance versus out-of-pocket costs.
- Financial Calculation: Students will calculate the total amount paid in premiums and deductibles over four years and compare this with the total value of the risks covered by the insurance.
- Benefit Analysis: Students will analyze the benefits received from having auto insurance, reflecting on the financial protection it provided.
Key Learning Outcomes:
- Insurance Plan Selection: Students will understand how to select an appropriate insurance plan based on coverage needs and budget.
- Cost-Benefit Analysis: Through practical calculations, students will learn to evaluate the financial impact of their insurance choices.
- Real-World Application: This worksheet provides a real-world context for understanding the importance of comprehensive auto insurance coverage.
This worksheet is designed to equip students with the knowledge to make informed decisions about auto insurance, enhancing their financial literacy and preparing them for future responsibilities.
Learning Objective
The primary objectives are to teach students how to assess different coverage options, select appropriate add-ons, calculate insurance premiums, and understand how insurance can mitigate financial risks associated with car ownership. Students will be able to choose a car insurance policy and the add-ons they would like to add -
Teacher Tips
Included with the activity, you can view the tips to clarify student's doubts or to evaluate answers (for a teacher scored worksheet).
Econ Ed -
Managing Risk
Students will know that Insurance fraud is a crime that encompasses illegal actions by the buyer (e .g .,
falsified claims) or seller (e .g ., representing non-existent
companies) of an insurance contract .. Students will use this knowledge to 12-10a . Provide examples of insurance fraud .
12-10b . Investigate the legal consequence for individuals who are convicted of insurance fraud .
Econ Ed -
Managing Risk
Students will know that Insurance is a financial product that allows people to pay a fee (premium)
to transfer the cost of a potential financial loss to an insurance company .. Students will use this knowledge to 8-2a . Describe ways in which having insurance can protect a person from financial loss .
8-2b . Explain what might happen to people who cannot afford to buy insurance for a particular risk or who choose not to buy it .
Econ Ed -
Managing Risk
Students will know that Financial loss can occur from unexpected events
that damage health, wealth, income, property, and/or future opportunities .. Students will use this knowledge to 8-1a . Describe how an unexpected event that damages health or property can impact a family’s financial situation .
8-1b . Explain how advance planning can reduce the financial impact of an event that causes damage to personal
property .
Econ Ed -
Managing Risk
Students will know that People can choose to avoid, reduce, retain, or transfer risk through the purchase of insurance . Each option has different costs and benefits .. Students will use this knowledge to 8-5a . Give examples of how people manage the risk of financial loss through risk avoidance, reduction, retention, and transfer .
8-5b . Identify ways in which an automobile driver can avoid, reduce, or transfer the risk of being in a crash .
8-5c . Weigh the costs and benefits of buying cell phone insurance versus accepting the risk .
