Vehicle Transportation Vocabulary Test (Ch 9)

Front

What is liability insurance?

Back

Liability insurance is financial protection against accidents that cause bodily injury and property damage.

Front

What are fixed costs in vehicle production?

Back

Fixed costs are production or vehicle costs that remain the same regardless of how much you produce or drive, such as building rent or vehicle registration.

Front

What are used-vehicle guides?

Back

Used-vehicle guides are published monthly and provide the average prices for vehicles that were purchased from dealers during the previous month.

Front

What is an open-end lease?

Back

An open-end lease is a contract that allows you to use a vehicle for a set time period by making a specified number of payments, and at the end, you can buy the vehicle for the residual value.

Front

What is rent?

Back

Rent is the payment for the use of property, such as a building or vehicle, often on a daily, weekly, or monthly basis.

Front

What is comprehensive insurance?

Back

Comprehensive insurance covers damages to your vehicle not involving a collision, such as theft, vandalism, or natural disasters.

Front

What is collision insurance?

Back

Collision insurance covers damages to your vehicle resulting from a collision with another vehicle or object.

Front

What are variable costs?

Back

Variable costs are production or vehicle costs that change based on the amount you produce or drive, such as fuel or maintenance.

Front

What is a rental agreement?

Back

A rental agreement is a contract that allows you to use a vehicle for a specified period, typically with a set payment schedule.

Front

What is the residual value in leasing?

Back

The residual value is the estimated value of a vehicle at the end of a lease term, which can be paid to purchase the vehicle.