Insurance EverFi

What is the main purpose of having auto insurance?

• To be able to legally drive a car with others across the US

• To get out of paying any money out of pocket when you get in an accident

• To protect yourself against unintentional costs and financial loss

• To elect a cost saving premium so you can save the most amount of money

What would happen if your car were stolen and you didn't have auto insurance?

• Your car loan institution (the bank you borrowed from) would be responsible for replacing your car

• You would still have to pay off your car loan in full

• The car dealership where you purchased the car would replace it

• You would not be required to pay the rest of your car loan.

Anthony caused a minor accident when he hit another car. Anthony's insurance company said that he needed to pay $500 before they could pay the claim. What does the $500 most likely refer to in this insurance policy?

• His auto insurance deductible

• His auto insurance premium

• His homeowners insurance

• Hi health care copay

What type of car insurance would you need to use if you damaged part of your neighbor's house in a car accident?

• Collision

• Bodily Injury Liability

• Property damage Liability

• Comprehensive

Meri's roof was recently damaged by a hurricane. Luckily, she has homeowners insurance, and files a claim that gets approved. What will this insurance help her do?

• Help her pay the costs to repair her roof

• Help her start a neighborhood clean up project

• Help her cover damages to her car

• Pay 70% of her salary for up to 6 months

Zack is 25, lives alone in an apartment, and works as a freelance developer. Why should he consider purchasing short-term disability insurance?

• So he will have monetary protection in case he is unable to work due to illness or injury

• So he will not need to purchase health insurance

• So he will not have to get life insurance for the next 10 years

• So he will have rental reimbursement in case he can no longer afford his apartment

Answer explanation

Short term disability insurance will pay part of your salary (usually 70%) while you are unable to work due to injury or illness.

In general, if you choose to have a HIGH deductible you will pay ________ for insurance premiums

• Less

• More

Mr. Driscoll pays $100 a month for his car insurance. This $100 is known as his insurance_________

• deductible

• premium

• policy

• plan

When Mr. Driscoll's car was stolen he was able to use his ____________ insurance.

• comprehensive car

• collision car

• liability car

• health

Which of these will NOT impact your car insurance cost?

• Driving Record

• Age

• Location

• Religion