In this lesson students will learn learn the basics of car insurance, including what it is, why you need it, and common car insurance terminology. We cover different types of car insurance coverage, factors affecting insurance premiums, and optional coverages.
Use this video lesson on the topic of understanding car insurance. Learn basic insurance and related concepts of:
- Car insurance premium
- Coverage limit
- Liability coverage
- Collision coverage
- Comprehensive coverage
- Uninsured/Underinsured Motorist Coverage
9-12th grades. High School. Adult Education.
25-35 minutes. It may be necessary to adjust the lesson plan and allocate more or less time to certain topics, depending on the needs and interests of the students.
Hand out the worksheet below (see the GET LESSON button near the bottom of the page).
Show students the video and have and have them complete the worksheet. Review the questions on the worksheet. A more comprehensive and detailed lesson plan can be accessed below for further instruction and study.
After watching the video, have students tell what the most important things they learned from the video.
See our additional resources on insurance:
Lesson Plan: Understanding Car Insurance
Students will understand the basics of car insurance, including its definition, types of coverage, and factors affecting premiums.
- Video: “What is Car Insurance? How does it work?”
- Whiteboard and markers
- Handouts with key terms and discussion questions
- Computer or tablet for research
Begin by asking students if they have ever heard of car insurance and what they know about it.
Share with students that car insurance is a legal requirement in most states and it helps protect drivers financially in case of an accident.
Video and Discussion:
Show the video “What is Car Insurance? How does it work?” to the class. After the video, ask students to share what they learned and to define the key terms mentioned in the video, such as premium, deductible, coverage limit, claim, and policy.
Discuss the importance of each type of coverage, including liability, collision, comprehensive, personal injury protection, and uninsured/underinsured motorist coverage.
Ask students to give examples of scenarios where each type of coverage might be necessary. Discuss the factors that affect car insurance premiums, including age and gender, driving history, type of vehicle, coverage limits and deductibles, and location.
Divide students into small groups and give each group a scenario, such as a car accident or car theft. Ask students to research and determine which type of coverage would be necessary and how it would protect the driver financially. Ask students to create a chart or graph that shows the average car insurance premiums for different age groups, genders, and types of vehicles.
Have students create a presentation that explains the basics of car insurance to a group of new drivers.
Review the key terms and types of coverage discussed in the lesson. Ask students to share one thing they learned about car insurance that they didn’t know before the lesson.
Remind students that car insurance is a legal requirement and it’s important to have the right coverage to protect them financially in case of an accident.