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Now you need to find car insurance. Remember that a financial
institution holds this car as collateral for your loan!
Therefore, you may find that you may be required to carry various
levels of coverage depending on the amount of your car
loan!
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Some Facts to Know About Insurance:
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By law, you may be required to carry certain
amounts and types of auto insurance. Coverage may vary by state. Check out
the mandatory coverage required for Wisconsin here: www.dot.wisconsin.gov
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Insurance companies only pay claims equal to a car's
actual cash value or market value, so comprehensive and collision
coverage may not be worth keeping on an older car that has
depreciated. It is generally recommended that you consider dropping
collision coverage after four years, or when the collision premium
equals ten percent of the car's market value. Understand that by
doing so, you will not be covered for damages to your car if it
overturns or collides with another object. |
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According to the Insurance Information Institute,
raising your deductible from $200 to $500 could reduce your
collision and comprehensive cost by 15 to 30 percent.
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You may be eligible for a rate reduction if you have
gotten married, moved to the suburbs, no longer insure a younger
driver, installed an anti-theft device, or if it has been at least
three years since your last violation.
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Your Task: Choose car insurance for each car.
Document your insurance coverage and the cost of this
coverage with either a printout from the web or the bid from your local
insurance agent. Save this documentation in your folder with the
rest of your WebQuest papers.
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Resources for Buying Auto Insurance
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Some Questions to Consider When Writing Your Conclusion:
What did you learn about insuring cars? What coverage did
you take? Was this cost what you expected? Why do you think it
was higher/lower? Did you insure all three cars with the same coverage?
Why or why not? How did different coverage affect the cost of
insurance? Did you consider a higher or lower deductible? How was
the premium affected by changing the deductible? Do you think insurance is
worth the cost?
Back to the Matrix
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