Car Insurance Basics

Nora and Grace are discussing the purpose of car insurance that Avery recently purchased for her new car. According to Avery, why did she get car insurance?

• To reduce the costs associated with a car accident

• To provide monthly income for her

• To cover the expenses of car maintenance

• To protect the car from natural disasters

Hannah, Avery, and Charlotte are discussing car insurance. Hannah says that liability coverage in car insurance covers injuries and property damage caused by the insured. Is she correct?

• Yes, it covers injuries and property damage caused by the insured

• No, it covers the medical expenses of the insured

• No, it covers collision damage to the insured's car

• No, it covers theft and natural disasters

What is the purpose of collision & comprehensive coverage in car insurance?

• To cover collision damage to the insured's car

• To cover injuries and property damage caused by the insured

• To cover the medical expenses of the insured

• To cover theft and natural disasters

David was driving his car when he was hit by another driver who fled the scene. David's car was damaged and he was injured. He had uninsured motorist coverage in his car insurance. What does this coverage do in such a scenario?

• Covers injuries and property damage caused by David

• Covers collision damage to David's car

• Covers the medical expenses of David

• Covers injuries and property damage in accidents with uninsured or underinsured drivers

Abigail, Noah, and Emma are discussing car insurance. Abigail mentions personal injury protection (PIP). Noah and Emma are unsure about what this means. Can you explain to them what personal injury protection (PIP) in car insurance is?

• It's coverage for collision damage to the insured's car

• It's coverage for injuries and property damage caused by the insured

• It's coverage for the medical expenses of the insured and passengers

• It's coverage for theft and natural disasters

Benjamin, Avery, and Oliver are discussing car insurance. Benjamin wonders, 'Why is PIP still a legal requirement in some states?'

• To cover the uninsured passengers in Benjamin's car

• To provide additional coverage for Avery's health expenses

• To reduce the costs associated with Oliver's car accidents

• To protect Avery's car from theft and natural disasters

Liam recently bought a car and is considering getting car insurance. He came across the term 'deductible'. What does a deductible in car insurance mean?

• The amount of money Liam must pay per accident before the insurer pays the rest

• The maximum amount the insurer is willing to pay

• The monthly fee paid by Liam

• The limit of liability coverage

Grace, Sophia, and Jackson are discussing car insurance. Sophia mentions uninsured motorist coverage and Jackson is unsure what it does. How would you explain it to him?

• It covers injuries and property damage caused by the insured

• It covers collision damage to the insured's car

• It covers the medical expenses of the insured

• It covers injuries and property damage in accidents with uninsured or underinsured drivers

What kind of car insurance is required by law?

• Liability insurance
• Personal injury protection
• Collision insurance
• Comprehensive insurance

What kind of coverage do most auto lenders require?

• liability coverage
• personal injury protection
• uninsured motorist coverage
• comprehensive and collision coverage