Insurance Questions 2024

Why might someone choose a lower deductible for their auto insurance policy?

• • Because they plan to drive without insurance

• • To increase the coverage for theft

• To reduce the out-of-pocket costs at the time of a claim

• • To ensure they pay the highest possible premium

Comprehensive coverage would cover damage to your car from which of the following scenarios?

• • A collision with another car at an intersection

• • Damage from driving through a pothole

• • Vandalism while parked outside your home

• • A lawsuit for damages you caused in an accident

Which of the following personal factors can affect your auto insurance premium?

• Your age and driving experience

• • The city you were born in

• • Your preference for sports cars over sedans

• • Your favorite color

What does uninsured motorist coverage protect you against?

• • Natural disasters

• • Drivers who do not have insurance

• • High repair costs for your vehicle

• • Being sued for damages you cause

If you are found at fault in a car accident, which coverage will help pay for the other party's medical expenses?

• • Uninsured motorist coverage

• • Comprehensive coverage

• • Collision coverage

• • Liability coverage

Liability coverage is required by law in most states because it:

• • Covers your medical expenses

• • Protects you from theft

• Protects other people from damages you cause

• • Covers collision damages to your car

Which of the following would likely increase your auto insurance premium?

• • Parking your car in a garage at night

• Adding collision coverage to your policy

• • A clean driving record for the past five years

• • Increasing your deductible

What is NOT covered by comprehensive coverage in auto insurance?

• • Theft of your car

• • Vandalism to your car

• • Damage from a flood

• Damage from a collision with another vehicle

Choosing the right deductible for your auto insurance policy involves considering:

• • The color and model of your car

• • Your driving skills only

• Your financial situation and risk tolerance

• • Only the monthly premium cost

A higher deductible on your auto insurance policy will generally result in:

• • Less coverage for theft

• • More comprehensive coverage

• Lower monthly premiums

• • Higher monthly premiums