Chapter 12

What is the purpose of insurance?

• All of these

• There is no purpose

• It is to protect you against a large financial loss. One type protects you against damage to your car and other type protects you against injury to another person or property

• It is to give your car value and to help you with money management

If you have a loan to purchase a car, you must have full coverage.

• Yes

• No

Which of these factors are important in determining what your insurance will cost?

SELECT ALL THAT APPLY.

• The type of policy

• Your age and sex

• Your driving record

• How far you drive each year

Which of these factors are important in determining what your insurance will cost?

SELECT ALL THAT APPLY.

• Whether or not your drive to work

• Where you live

• How far you drive to work

• The age and type of car you have

What type of insurance provides financial protection in case you cause the injury or death of another person or persons?

• Property Damage Insurance

• Bodily Injury Insurance

• Storm Insurance

• None of these

What type of insurance provides you protection in case you damage this property of another person's?

• Property Damage Insurance

• Bodily Injury Insurance

• Storm Insurance

• None of these

What is the purpose of compulsory insurance?

• To make sure that claims arising from accidents can be paid

• To make sure that you pay money to the corporation for taxes

• To make sure that you can purchase a car

• To get a loan

You and Raya back of a parking spot into each other. No one is hurt. What type of insurance would you use?

• Bodily Injury Insurance

• Payment Insurance

• No-Fault Insurance

• All of these

covers repairs to your car regardless of who is at fault. It pays for damage even if no one else is involved?

• Property Insurance

• Liability Insurance

• Bodily Injury Insurance

• Collision Insurance

As your car ages, it becomes worth less money.

• True

• False