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Auto Insurance

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is Auto Insurance

(Choose the best answer)

a)

Insurance the renews itself

b)

Gives beneficiaries money for vehicles

c)

Prevents anyone with a motor vehicle from potential risks

d)

None of the above

2.

Bob is a new driver who applies for auto insurance... Will his rates be higher, lower, or the same as his friend Tom that has been driving for a year

a)

Higher

b)

Lower

c)

Remains the same

d)

None of the above

3.

If Todd has been driving for years but has a DUI on his record, how will this impact him?

a)

It won't impact him at all because he is an experienced driver

b)

Todd's rate would double

c)

His rate will rise anywhere between 28 and 371 percent

d)

Todd does not have insurance

4.

Bob doesn't believe in having auto insurance. He thinks it is pointless. Is this good or bad, and why?

a)

Good, because he will not need to pay for it

b)

Bad, because he will not be able to get free benefits for being a good driver and not getting into any accidents

c)

Good, because he will not need it right away

d)

Bad, because he will not be covered by an insurance agency if he were to get into an accident

5.

Timmy owns a 2001 Honda Civic while Enrique owns a 2019 Tesla. Which one will have higher rates if they are both the same age, and why?

a)

Timmy, because he got his car first

b)

Enrique, because his car is faster

c)

Timmy, because his car is an older model than Enrique's so his car might break

d)

Enrique, because his car is more expensive

6.

Nick decides he doesn't need insurance because he is a good driver. He wrecks into a tree will texting. What must he do now?

(Choose the best answer)

a)

Apply for auto insurance

b)

Pay money to the tree owner

c)

Pay out of pocket for the repairs to his vehicle

d)

Get a new car

7.

Jack just recently moved from an isolated are to a very populated city. His premium is very high, so he decides to ask his agent why it's like this. What is the most logical answer his agent could respond with?

a)

You have little experience with driving in this area, so your rate is naturally higher

b)

Since you live in a very populated area, it is more likely that you could be involved in an accident

c)

Since you live around a lot of well known businesses, you have to pay an extra fee

d)

You are being charged an abnormal rate because your city isn't as fortunate as others

8.

Chris just recently purchased a brand new BMW, which is a big upgrade from his 1995 Honda Civic. He is confused on why his premium has risen. Why could this be?

a)

His car is more expensive than most people's cars

b)

By purchasing a newer vehicle, it would cost more to repair if in an accident

c)

His new car was featured on the BMW offering site

d)

The newer car is more expensive than his previous one

9.

John doesn't own a vehicle and is comfortable with taking the bus to and from work. Which insurance type is more than likely not needed at the moment?

a)

Death Insurance

b)

Life Insurance

c)

Health Insurance

d)

Auto Insurance

10.

True or false?

__________________

Sean has applied for auto insurance, but doesn't pay a fee towards the premium one month. He will be covered next time he is involved in an incident

a)

-----------------

b)

True

c)

False

d)

-----------------