Insurance can be quite expensive. You have to pay for your insurance each year. Then if you have an accident, you usually have to pay some money! This is because most polices have an excess. this means that you must pay the first part of the repair bill. For example, if the cost of repair is $1000 and you have a $400 excess, you must pay the first $400, the insurance company will pay the rest.

Usually the younger you are, the more insurance costs and the higher the excess. Insurance is most expensive for male drivers who are under 21. It is least expensive for experienced drivers who are over 25.

There are 5 or 6 different categories of rating. If you have never had insurance before, you will start on Rating 5 or 6. The insurance company will look at whether you are an experienced driver, how old you are and whether you are male or female. If you are an inexperienced male who is under 21, you will be on Rating 5 or 6 and your insurance will be the most expensive. If you are a 30 year old female who has never had insurance, you will also start on Rating 5 or 6, but you won't pay as much as an under 21 male.

If you are with the insurance company for 12 months and you don't have an accident or don't make a claim, you will go up to Rating 4 or 5. Your insurance will be cheaper. Each year that you don't claim, you move up to a higher category and your insurance gets cheaper. If you do make a claim, you usually drop back a rating. When you reach Rating 1, the cost of your insurance will be much less. If you have been on a Rating 1 for a few years, the insurance company may give you a Rating 1 for Life. That means that even if you have an accident, you will remain on Rating 1.


Read the sentences and select true or false.

true   false 1. The excess is paid by the insurance company.   
true   false 2. If you make a claim, you must pay the excess.   
true   false 3. 25 year old males pay the most for insurance.   
true   false 4. There are five or six different categories of ratings for car insurance.   
true   false 5. People usually start on Rating 5 or 6.   
true   false 6. If you don't make a claim, you go up a level each year.   
true   false 7. Insurance is cheaper on Rating 1 than on Rating 6.   
true   false 8. If you make a claim, you usually drop back a level.   

Score =

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