Insurance Bell Ringer 2

Ralph has a shiny new car, and he wants to make sure the insurance company will help him fix or replace it in case of any type of damage. Each of these coverage areas will provide the type of coverage he’s looking for on his car EXCEPT…

• Uninsured/underinsured motorist

• Collision

• Comprehensive

• Liability

If you drive a fancy car a lot of miles each month, your premiums will likely be…

• Lower than expected compared to another driver with the same driving record but a cheaper car

• The same as for another driver with the same driving record but a cheaper car

• Higher than expected compared to another driver with the same driving record but a cheaper car

• Unchanged, because all drivers pay the exact same premium based on federal law

Bodily injury liability coverage provides coverage in which scenario?

• The insured driver causes an accident where another person is injured

• The insured driver causes an accident where another’s property is damaged

• The insured driver is a victim of an accident and needs to replace their own car

• The insured driver is a victim of an accident and needs to pay their own medical bills

What type of auto insurance are you required to carry in almost every state (49 out of 50)?

• Insurance if you damage your own property

• Insurance if you cause injury to another person

• Insurance in case you get into an accident with someone who does not have insurance

• Insurance if you cause injury to yourself

Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages to his car total $6,200. Fortunately, he has collision coverage. How much will Frank need to pay out-of-pocket?

• $0

• $1,000

• $6,200

• $30,000

You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $58,000. You have a $75,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?

• $0

• $17,000

• $58,000

• $75,000

Someone broke into Sam’s car by smashing the passenger window. Which type of auto insurance coverage will help cover the cost to get the window replaced?

• Bodily injury liability

• Property liability

• Collision

• Comprehensive

Which of the following statements is TRUE about auto insurance premiums?

• If you have an auto insurance policy and don't get into a car accident or file any claims for a year, you get your premiums back from the insurance company

• If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease

• Auto insurance premiums are a fixed price across all insurance companies

• If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase

When setting your premium, your car insurance company may consider each of the following EXCEPT...

• How many miles you drive per year

• Your age

• Your driving record

• Your height