Understanding Auto Insurance

Which of the following factors is NOT typically used by auto insurance companies to determine premiums?

• Financial history

• Marital status

• Favorite color

• Age

What is one way to potentially lower your car insurance premium?

• Increase your deductible

• Avoid bundling policies

• Drive more miles annually

• Purchase a more expensive car

What is a potential risk of choosing liability-only coverage?

• Increased deductible

• Limited coverage for your own vehicle

• More paperwork

• Higher premiums

How can bundling insurance policies benefit you?

• It limits your coverage options

• It requires more paperwork

• It provides a discount

• It increases your premiums

What is one benefit of taking a defensive driving class?

• It reduces your deductible

• It provides a 10% discount on premiums

• It increases your insurance premium

• It extends your policy term

What is a potential downside of using comparison sites to shop for insurance?

• They always provide the best rates

• They only compare local companies

• They may sell your data

• They require in-person visits

Why might someone choose to work with an insurance agent?

• To avoid middlemen

• To access smaller local insurance companies

• To increase their premiums

• To limit their coverage options

Why is it important to regularly review your auto insurance policy?

• To limit your coverage

• To avoid any discounts

• To increase your premiums

• To ensure it aligns with life changes

What life event might require you to update your auto insurance policy?

• Changing your favorite color

• Buying a new car

• Reading a new book

• Getting a new job

What is the main purpose of auto insurance?

• To avoid all accidents

• To limit driving habits

• To protect from financial catastrophe

• To increase financial risk