Lesson 8 Day 2 Car Insurance

Which statement best defines car insurance?

• A company agrees to protect the vehicle owner from financial losses.

• A bank agrees to finance the purchase of a car.

• A warranty that covers routine maintenance services.

• A roadside assistance membership for towing only.

According to the lesson, car insurance protects against which common situations? Select the option that lists only covered examples.

• Flat tires, oil changes, and car washes

• Car wreck, theft, and vandalism

• Parking fees, tolls, and registration

• Speeding tickets, license renewal, and fuel costs

Why is having car insurance necessary in most states?

• It earns you a tax refund every year.

• It is required by law, and without it you may get a ticket and in some states the police might even take your car away.

• It helps you qualify for student discounts.

• It guarantees free gas for a year.

Which outcome is an example of financial protection provided by car insurance if you cause an accident?

• Waiving your parking tickets

• Paying for routine oil changes

• Helping cover medical bills and repair costs for others

• Providing free detailing services

According to the diagram on liability coverage, what is the primary purpose of liability coverage in auto insurance?

• To pay for repairs to your own car when you cause a crash

• To protect you when you’re at fault in an automobile accident by covering harm to others

• To lower your monthly premium regardless of your driving record

• To provide roadside assistance and towing only

A driver causes a crash that dents another person’s truck and injures the truck’s passenger. Based on the diagram, which costs are liability coverage designed to address?

• The driver’s own car repairs only

• The passenger’s injury and the truck’s property damage

• Only the passenger’s injury, not the truck damage

• Only the truck’s damage, not the passenger’s injury

Which statement best describes liability coverage?

• It pays for your car’s repairs after an accident regardless of fault.

• It covers medical and property costs for others if you cause an accident.

• It covers damage to your car from theft or vandalism.

• It is not required by any state.

What does liability coverage not cover?

• Damage you cause to someone else’s property.

• Your own injuries or damage to your car.

• Natural disaster damage to your car.

• Repair costs if you are not at fault.

People often say they have "full coverage" when they add which types of coverage beyond what most states require?

• Liability and uninsured motorist

• Collision and comprehensive

• Comprehensive and liability

• Collision and personal injury protection

Which situation is covered by collision coverage?

• Your car is damaged in a crash, regardless of who caused it.

• Your car is stolen from a parking lot.

• Your car is vandalized with spray paint.

• A tree falls on your car during a storm.