2.  A way to “ensure” that you are protected from financial loss  When something bad happens, your insurance will cover some/all of the damage (sometimes)  Sometimes your insurance cannot cover the damage

3.  The many different types of insurance  4 common types: auto, home, life, and health  Other types: business, apartment, pet, boat, etc.

4.  Contract between you and your insurance company  Contract- legal promise for something of value; you promise to pay a premium, they promise to pay your claims  Premium- amt. of money you pay every week/month/ year for your insurance coverage (this is determined by what kind of risk you are and how much coverage you want)

5.  Possibility of financial loss  Everyone is some type of risk  The higher the risk you are the more money you pay. Ex. Teenagers may pay more for auto insurance

6.  Demand by a person seeking recovery from a loss  Claim adjuster- people who investigate your claim  You cannot receive more money than your policy allows and you may have to pay a deductible (amt. you must pay yourself before the insurance company pays)

7.  In Texas, you must have auto insurance if you drive. You may be able to be on your parents insurance till 25.  If you buy a house, you may want home owners insurance  If you rent a house/ apartment/condo, you should buy renter’s insurance

8.  If you get married and start a family, you should buy life insurance (girls: buy insurance on him, not you!)  If you start a business, buy business insurance

9.  Do your research and after deciding on a company and policy, find an agent  Agent- person who represents an insurance agency  You can contact them by: phone, internet, or going to the agent’s office

10.  Its good to have insurance when something unexpected happens so you can afford to pay for the damage  It gives you peace of mind knowing your protected