Types of Auto Insurance Quiz

Within a persons first three years of driving, there is a ​ ​ (a)   chance a person will be involved in an automobile accident.

• 75%
• 50%
• 25%
• 100%
• 0%

Which type of auto insurance is required to drive a car.

• Liability

• Collision

• Comprehensive

• Term

Answer explanation

Liability is the minimum amount of insurance required by law to be driving an

automobile.

Whether or not to purchase insurance is an important question to consider when making a financial plan for your life.

• True

• False

Answer explanation

Insurance plays a large role in most individual’s financial management plan. Almost

1 in 12 dollars in the U.S. economy is spent on insurance.

Most families can afford health care and medical bills if something happens and they do not have insurance.

• True

• False

Answer explanation

Health care costs are extremely high and it can be hard for the average person to afford health care. Large medical expenses could wipe out an individual’s savings.

Most Americans have employer-based health insurance.

• True

• False

Answer explanation

61% of Americans have employer-based health insurance.

Which type of person should have life insurance?

• Everyone, regardless of age or situation should have some sort of life insurance

• Anyone who has someone depending on them or their income should have life insurance

• Life insurance in a luxury you should only consider if you have a high paying job

• You only need life insurance if you are close to death or are in a dangerous line of work

If your car was damaged in an accident, This type of insurance will cover you. It doesn’t matter who was at fault while driving. However, if the damage came from something besides a crash, It won’t be able to help you.

• Collision

• Liability

• Comprehensive

• Uninsured Motorist

You are hit in an accident by another driver. At the hospital, you discover the other driver driver doesn’t have insurance to cover your medical bills. This type of insurance will cover you!

• Collision

• Liability

• Comprehensive

• Uninsured Motorist

This is the best friend of new and/or expensive cars, since repairing even small damage can be incredibly costly. If you hit an animal, or your car is stolen, or a tree falls on it, it's still got you covered!

• Collision

• Liability

• Comprehensive

• Uninsured Motorist

This type of auto insurance you use when you cause damage to other people and vehicles. It protects others… against you in case an accident is your fault (which protects you… in your wallet). But it won’t pay for any damage to your car or body.

• Collision

• Liability

• Comprehensive

• Uninsured Motorist