Auto Insurance Quiz

What are the different types of auto insurance?

• accidental death and dismemberment coverage, rental car insurance, loan/lease payoff coverage, custom parts and equipment coverage

• bodily injury liability coverage, no-fault insurance, gap insurance, towing and labor coverage

• liability coverage, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and personal injury protection

• property damage coverage, medical payments coverage, rental reimbursement coverage, roadside assistance coverage

Name three factors that can affect auto insurance rates.

What is a deductible in auto insurance?

• The amount of money that the policyholder must pay out of pocket before the insurance company will cover the remaining costs of a claim.

• The amount of money that the policyholder must pay to renew their auto insurance policy.

• The maximum amount of money that the policyholder can claim from the insurance company.

• The amount of money that the insurance company pays to the policyholder before the claim is settled.

How does the type of car affect auto insurance rates?

• The type of car affects auto insurance rates based on factors such as the car's make, model, age, value, safety features, and repair costs.

• Auto insurance rates are solely determined by the insurance company's policies.

• Auto insurance rates are only affected by the driver's age and driving record.

• The type of car has no impact on auto insurance rates.

Why is it important to have auto insurance?

• To protect against theft or vandalism.

• To comply with legal requirements.

• To provide financial protection and cover medical expenses in case of accidents or damage to the vehicle.

• To save money on car repairs.

What is liability coverage in auto insurance?

• Coverage for damages and injuries caused by the insured vehicle.

• Coverage for damages and injuries caused by natural disasters.

• Coverage for damages and injuries caused to others in an accident.

• Coverage for damages and injuries caused by theft or vandalism.

How does a person's driving record impact auto insurance rates?

• A person's driving record has no impact on auto insurance rates.

• Auto insurance rates are solely based on the type of car a person drives.

• Insurance companies do not consider a person's driving record when determining auto insurance rates.

• A person's driving record impacts auto insurance rates because insurance companies use it to assess the risk of insuring that person.

What is comprehensive coverage in auto insurance?

• A type of coverage that only pays for damage caused by a collision.

• A type of coverage that helps pay for damage to your vehicle that is not caused by a collision.

• A type of coverage that only pays for damage caused by natural disasters.

• A type of coverage that only pays for damage caused by theft.

What is the purpose of uninsured/underinsured motorist coverage?

• To compensate drivers for lost wages due to an accident.

• To cover the cost of vehicle repairs in the event of an accident.

• To protect drivers in the event of an accident with an uninsured or underinsured driver.

• To provide financial assistance to drivers who are at fault in an accident.

How can a person lower their auto insurance premiums?

• Choosing a lower deductible

• Driving recklessly and getting multiple traffic violations

• Choosing a higher deductible

• Not taking advantage of available discounts