Different Types of Auto Insurance

What is the primary purpose of liability insurance in an auto policy?

• To cover theft of your vehicle

• To pay for your medical expenses after an accident

• To cover damages to other people's property and injuries in accidents you cause

• To pay for any mechanical breakdowns in your car

Collision coverage in car insurance is designed to cover:

• Damage to your car caused by non-crash incidents, like floods or theft

• Injuries to yourself and passengers in your vehicle

• Damage to your car resulting from a crash, regardless of who is at fault

• Legal fees in case you are sued after an accident

Comprehensive insurance generally does NOT cover:

• Animal-related damage

• Hail damage

• Collision damage

• Theft

Which component of car insurance specifically provides coverage for medical expenses after an accident, regardless of fault?

• Liability insurance

• Personal Injury Protection (PIP)

• Gap insurance

• Comprehensive insurance

What does uninsured motorist coverage protect you against?

• Damage caused to your car by natural disasters

• Accidents with drivers who have no insurance

• The cost of a rental car after an accident

Gap insurance is most useful for:

• Covering the cost of a new car after a total loss

• Paying the difference between what you owe on your car loan and the car's actual cash value

• Lowering your monthly premium payments

• Reimbursing health-related accident expenses

Which of the following is a factor that generally affects your car insurance premium?

• Your favorite color

• The type of warranty on your vehicle

• Your driving history and record

• The brand of gasoline you use

What is the deductible in an insurance policy?

• The maximum amount an insurer will pay for a claim

• The portion of a claim paid by the policyholder before the insurance coverage applies

• The monthly payment made to maintain the policy

• The percentage of policy coverage that applies to accident damage

Which type of coverage pays for repairs to your vehicle if you are at fault in an accident?

• Comprehensive coverage

• Collision coverage

• Liability coverage

• Uninsured motorist coverage

What is the purpose of a policy limit in an auto insurance policy?

• To set the maximum speed you are covered up to in a vehicle

• To cap the amount the insurance company will pay on a claim

• To determine how often you can file claims

• To define the geographic area in which you are covered