EVERFI: Insurance Basics

What is the main purpose of having auto insurance?

• To protect yourself against unintentional costs and financial losses

• To be able to legally drive a car with other passengers across the U.S.

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

• To elect a cost saving premium so you can save the most amount on your policy

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

• You car loan institution 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 your car would replace it.

• You would NOT be required to pay the remainder 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 comprehensive insurance

• His homeowners insurance

• His health care copay

• His auto insurance deductible

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

• Comprehensive insurance

• Bodily injury liability

• Property damage liability

• Collision insurance

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?

• Her homeowners insurance will help her pay the cost of her roof repair.

• Her homeowners insurance will help her start a neighborhood clean up project.

• Her homeowners insurance will help cover any damage to her car.

• Her homeowners insurance will pay 70 percent of her salary for up to 6 months.

Zac 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 have to purchase additional health insurance for work related injuries

• So he will not have to increase his life insurance coverage over the next 10 years

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