Car Insurance Quiz

What is a deductible in the context of car insurance?

• The amount of money the insurance company pays to repair your car.

• The amount of money you agree to pay to help repair or replace your car if you have a claim covered by your policy.

• The total cost of repairing your car after an accident.

• The monthly payment you make for your car insurance.

In the given example, how much does the insurance company pay for the car repairs?

• $500

• $4,500

• $5,000

• $0

What is the benefit of choosing a higher deductible for your car insurance?

• You might pay less for your insurance premium now.

• You get a new car if your current one is damaged.

• Your insurance company pays the full amount for any damages.

• You do not have to pay any deductible if you have an accident.

If a driver has a $500 deductible, how much would they pay out of pocket for a repair that costs $5,000?

• $500

• $4,500

• $5,000

• $0

What is the limit per person for Bodily Injury Liability in Scenario 1?

• $57,000

• $7,000

• $50,000

• $100,000

In Scenario 1, how much does the driver have to pay after the insurance coverage?

• $57,000

• $7,000

• $50,000

• $0

What is the limit per person for Bodily Injury Liability in Scenario 2?

• $57,000

• $7,000

• $50,000

• $100,000

In Scenario 2, how much does the driver have to pay after the insurance coverage?

• $57,000

• $7,000

• $50,000

• $0

What is the benefit of choosing a higher limit for your insurance coverage?

• It decreases the insurance premium.

• It increases the risk of paying other people's expenses.

• It helps protect from having to pay other people's expenses later.

• There is no benefit; it only increases the cost.

Imagine Mia has just purchased a new car with a loan. What is the purpose of Guaranteed Asset Protection (GAP) insurance in this scenario?

• To cover the cost of a rental car while Mia's car is in the shop

• To provide coverage for temporary car insurance for Mia

• To cover the remainder of what Mia still owes on her car loan if the car is totaled

• To pay for emergency repairs on Mia's car