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Unformatted text preview: What does it mean to have insurance? Choose two types of insurance (auto, home, health, disability, or life insurance) and identify one characteristic of each. Angie is considering the options for deductibles on her auto insurance. She can save $150 a year by switching from a $500 to a $1,000 deductible. What is a deductible? What does this mean if Angie has a car accident? A deductible is an amount that you must pay out of pocket before the insurance company is obligated to pay anything. This means that if Angie goes with 1000.00 dollar deductable and she gets into a accident she has to pay the first 1000.00 dollars of whatever it cost to get her car fixed. In this case she doesn’t actually have to pay 1000.00 upfront. Whoever is fixing her car will give her a estimate and say that it is going to cost 2000.00 dollars to get it fixed the insurance will basically take and pay half of that then she is just responsible for the remaining balance so if they could work with her on payments or if she does...
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- Spring '10