Choosing Your Car Insurance

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:

1. Plan Selection: Students will choose an insurance plan for their car - basic, standard, deluxe, or platinum, considering their coverage needs and budget.
2. Add-Ons: Students can add optional coverages to their chosen plan, impacting the annual premium.
3. 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).
4. 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.
5. 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.
6. 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.