Insurance Quiz

What principle does insurance work on?

• Luck

• Shared Risk

• Shared Cost

• Overpayments

Which of the following is a reason that insurance is a good investment?

• Provides financial security and peace of mind

• Provides 100% reimbursement for all car accidents

• Can be used as a savings account when you don’t have accidents

• Can ensure that unexpected events do not occur for you

Which of the following is a true statement on a deductible amount?

• If increased will increase the premium.

• Mandated by state law.

• Not paid by the insurance company.

• The person at fault will pay.

What would be required with a deductible of $300?

• The insurance company to pay the first $300 at 80 percent of damages.

• The insurance company of the party at fault to pay.

• The insurance company to pay the first $300 at 100 percent of damages.

• You to pay the first $300 of damages.

If you have an accident resulting in $2,000 damage to your car and have $500 deductible collision coverage, which of the following statements is true?

• You and your insurance company will split the $2,000 damage, each paying $1,000.

• You will pay the first $500 and your insurance company will pay $1,500.

• Your insurance company will pay $2,000.

• You will pay $1,500.

Which of the following is true if you choose a low deductible?

• Lower premiums

• Higher premiums

• Lower liability

• Higher liability

Comprehensive coverage would cover financial losses due to:

• Damage to your car in an accident for which you were at fault.

• Injuries caused by a driver without insurance.

• Damage to your car caused by fire, wind, or hail.

• Damage to a neighbor's tree with your car.

Which of the following would pay for medical care for other people who were injured in your automobile as a result of an accident that was your fault?

• Collision

• Comprehensive

• Medical payments

• Bodily injury insurance

Which of the following statements about uninsured motorist coverage are true?

• It helps pay the cost of damage to other people’s property.

• This coverage is not recommended since nearly all drivers are insured.

• It pays when a driver who is at fault, but has no insurance.

• It replaces bodily injury liability when you are at fault.

Which of the following are auto insurance rates are based on?

• Whether you keep your car in the garage or not.

• Your driving record.

• How well you maintain your vehicle.

• The condition of your vehicle.