Chapter 9 Lesson 2 Auto Insurance

Why is auto insurance required by law in most states?

• To ensure everyone has access to a car

• To prevent accidents from happening

• To protect your finances and keep you moving when things go wrong

• To increase state revenue

Which type of coverage pays for damage to your car after a collision with another car or object?

• Comprehensive coverage

• Collision insurance

• Uninsured/underinsured motorist protection

• Personal injury protection

What does comprehensive coverage pay for?

• Damage from a collision with another car

• Loss or damage from theft, vandalism, or natural events

• Medical expenses for injuries to the driver

• Damage to other people's property

What is the purpose of uninsured/underinsured motorist protection?

• To cover damage to your car from a collision

• To cover medical expenses for passengers

• To protect you if hit by a driver without enough insurance

• To pay for damage to other people's property

What does personal injury protection (PIP) cover?

• Damage to your car from a collision

• Medical expenses and lost wages for the driver and passengers

• Damage to other people's property

• Theft or vandalism of your vehicle

What should you keep in your vehicle as proof of insurance?

• A copy of your driver's license

• Your insurance card

• A copy of your car's registration

• A list of emergency contacts

Which of the following is NOT a way to lower your auto insurance cost?

• Get good grades

• Drive a brand new car

• Take a driver education class

• Shop around for the best rate

What information is typically found on your insurance card?

• Your social security number

• Your vehicle's maintenance history

• Name, policy number, vehicle description, expiration date, and claims phone number

• Your driving record

Why might a lender require you to have collision coverage?

• To ensure you can pay for medical expenses

• To protect their financial interest in the car

• To cover damage from natural disasters

• To reduce your insurance premium

Which of the following is a benefit of staying on your parents' policy?

• It increases your insurance premium

• It provides less coverage

• It can be more cost-effective

• It limits your driving privileges