What is Automobile Insurance?

The video tutorial explains various types of automobile insurance coverages, including liability insurance, which covers damages to third parties caused by the insured vehicle. It also covers collision insurance, which deals with damages to the insured vehicle itself, and comprehensive policies that offer broader coverage, including theft and mechanical issues. Additionally, the video discusses uninsured and underinsured motorist coverage, which protects the insured when the at-fault party cannot be identified or is unable to pay. The tutorial concludes with a mention of special coverages available under automobile policies.

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

• To cover damages to the insured vehicle

• To pay for damages caused to third parties

• To cover theft of the vehicle

• To pay for mechanical repairs

Under what condition is collision insurance typically required?

• When the vehicle is over ten years old

• When the vehicle is used for commercial purposes

• When the vehicle is leased or financed

• When the vehicle is brand new

Which type of insurance policy covers a wide range of risks including theft and mechanical malfunction?

• Liability insurance

• Comprehensive insurance

• Uninsured motorist coverage

• Collision insurance

What does uninsured/underinsured motorist coverage protect against?

• Damages caused by natural disasters

• Damages caused by an unidentified or uninsured third party

• Damages caused by the insured's negligence

• Damages caused by mechanical failure

Which of the following is NOT typically covered under a comprehensive automobile policy?

• Road hazards

• Theft

• Mechanical malfunction

• Routine maintenance