Chapter 20 Test

All states require drivers to carry certain types of automobile insurance before they can apply for a license for their car.

• True
• False

If your car suffers $3,500 damage in an accident and your deductible amount is $500, you will have to pay $3,000 to fix your car.

• True
• False

Under an assigned-risk plan, people injured in an auto accident collect for their financial losses from their own insurance companies no matter who cause ed the accident.

• True
• False

Personal liability coverage covers claims from injuries to people or damage to property caused by you or your family.

• True
• False

Which of the following is a type of auto insurance that covers property damage?

• bodily injury liability
• comprehensive coverage
• uninsured motorist
• medical payments

Dana has auto insurance with 100/300 bodily liability coverage.  Five people were injured in an accident for which she was at fault.  Each injured person received the same amount, which paid the maximum.  How much did each person get?

• $60,000
• $100,000
• $300,000
• $30,000

Type of auto insurance that covers people in other cars, passengers riding with the insured and pedestrians.

• inventory
• bodily injury liability
• depreciation

Type of auto insurance that protects a driver against claims if the insured's car damages someone else's property and the insured is at fault.

• property damage liability
• dependent
• depreciation
• cash value

___ laws protect the public from financial loss caused by drivers.

• financial responsibility
• personal inury
• property damage

Personal liability coverage covers claims from injuries to people or damage to property caused by you or your family.

• True
• False