Chapter 10 Quiz

Why do you need insurance?

• To protect your assets in case of accident, fire, or other disaster.

• To repair your assets when needed

• To protect your family's financial well-being

• All of the above

The insurance declaration page does not include:

• The type of insurance you have

• Local emergency contacts

• Who is covered under the insurance policy

• The maximum amount an insurance company will pay

What type of auto insurance will you need to get your car repaired if you are in a hail storm?

• Liability

• Collision

• Comprehensive

• Uninsured motorist

If you are at fault in an auto accident, what insurance coverage will you need to get the funds to have your car repaired?

• Liability

• Collision

• Comprehensive

• Uninsured motorist

If you are at fault in an auto accident and your passenger sustains injuries and is required to go to a hospital for treatment, what type of insurance will cover those expenses?

• Liability

• Collision

• Comprehensive

• Health

True or False: You can purchase insurance only through on insurance agent who is licensed in your state.

• True

• False

Your insurance deductible is:

• The amount you have to pay if you make an insurance claim.

• The cost of insurance that is deducted from your paycheck.

• The maximum the insurance company will pay.

• A fee insurance companies charge.

Minimum automobile liability insurance is:

• Not something you need but is a suggested amount of coverage.

• The same in every state.

• Different in every state.

• Sufficient to cover your legal responsibility if you cause an accident.

Auto insurance rates are determined by:

• The likelihood that you will make a claim against your insurance company.

• Your age.

• Your driving record.

• All of the above.

SR-22 liability insurance is:

• Required by the state if you are classified as a high-risk driver

• Issued by the state

• Required only if you are cited for driving under the influence

• Required only if you own a car