WorksheetsCar Insurance
Total questions: 25
Worksheet time: 13mins
What is one legal reason for carrying auto insurance mentioned in the text?
It allows you to park in restricted zones
It is required by law in most states to carry minimum liability coverage
It is necessary to buy a new car
It is required to cross state lines
Which statement best explains the purpose of auto insurance according to the text?
It guarantees you will never be in an accident
It protects finances and pays up to purchased limits when you are at fault or liable
It replaces your car with a newer model after any accident
It is only for drivers with previous violations
Identify the six basic types of car insurance listed.
Collision, comprehensive, uninsured/underinsured motorist, personal injury protection, property damage liability, bodily injury liability
Collision, fire, flood, theft, rental reimbursement, roadside assistance
Comprehensive, rental car, glass repair, tire replacement, gap coverage, travel interruption
Liability-only, medical-only, damage-only, driver-only, passenger-only, vehicle-only
What does collision insurance primarily cover?
Damage from theft or vandalism
Damage to your car after a collision with another car or object, including paying market value if totaled
Medical expenses for passengers
Losses caused by uninsured drivers
According to the text, lenders typically require which coverage if you owe money on your car?
Comprehensive coverage
Collision coverage
Uninsured/underinsured motorist protection
Personal injury protection
Comprehensive coverage pays for loss or damage caused by which situation?
Hitting another vehicle at an intersection
Theft, vandalism, a falling tree, hail, or accidentally hitting a deer
Driver error leading to a collision
Costs from uninsured drivers hitting you
Uninsured/underinsured motorist protection is designed to cover which scenario?
Your car is damaged by hail
You hit a tree and total your car
An uninsured or underinsured driver hits you and their coverage isn’t enough
You need routine maintenance
Personal Injury Protection (PIP) can cover which of the following?
Only vehicle repairs after a crash
Medical expenses, lost wages, and other financial losses suffered by the injured person
Parking tickets and fines
The market value of your car before a wreck
Which description best matches the function of property damage liability?
Pays for injuries to drivers and passengers in your car
Covers damage you cause to someone else’s property with your vehicle
Covers damage to your car from hail
Pays your lost wages after an injury
Why should you keep a copy of your insurance card in your vehicle?
It is needed to start the claims process and serves as proof of insurance in case of an accident
It reduces your premium automatically
It is required to refuel at gas stations
It allows you to drive outside your state
Which detail is included on an insurance card according to the text?
Credit score
Name and policy number, vehicle description, expiration date, and a claim phone number
Driving test results
Mechanic’s contact information
Which action is recommended to lower the cost of auto insurance?
Avoid reporting accidents
Get good grades
Decline all coverage types
Only drive at night
Which combination lists two strategies from the text to reduce auto insurance costs?
Buy a sports car and ignore maintenance
Take a driver education class and shop around for the best rate
Remove liability coverage and speed carefully
Switch policies weekly and avoid claims
A teen driver compares two options to save money. Based on the text, which is more likely to lower costs?
Making good grades
Buying a brand-new luxury car
Skipping driver education
Declining PIP coverage in all states
Scenario: You accidentally hit a deer, causing damage to your vehicle. Which coverage applies?
Collision coverage
Comprehensive coverage
Uninsured/underinsured motorist protection
Bodily injury liability
Scenario: Another driver with no insurance rear-ends you, and you have injuries. Which coverage from your policy would address this situation?
Property damage liability
Uninsured/underinsured motorist protection and PIP for medical costs
Comprehensive coverage only
Collision coverage only
Which statement best distinguishes collision from comprehensive coverage?
Collision handles non-collision events; comprehensive handles crashes
Collision covers crashes with vehicles or objects; comprehensive covers non-collision events like theft, hail, or falling trees
Both only pay medical expenses
Comprehensive is required by lenders instead of collision
1. Jane has auto insurance with a deductible of $500. She was involved in an accident where the total damage to her vehicle was $2,000. How much will her insurance company cover after Jane pays her deductible?
A) $1,500
B) $2,000
C) $500
D) $1,000
Maria has auto liability insurance with limits of $50,000 per person and $100,000 per accident. If she causes an accident where two people are injured, incurring medical expenses of $60,000 and $40,000, how much will her insurance cover?
$100,000
$90,000
$80,000
$60,000
Jacob’s car is damaged in an accident he caused. The repair costs are $8,000, and he has a collision coverage deductible of $1,000. How much will his insurance pay for the repairs?
$1,000
$8,000
$9,000
$7,000
Which type of auto insurance coverage pays for injuries you cause to others in an accident?
Property damage liability
Collision coverage
Comprehensive coverage
Bodily injury liability
Which factor is most likely to increase your auto insurance premium?
Maintaining a clean driving record
Completing a driver safety course
Having multiple traffic violations
Choosing a higher deductible
If you were to be driving on I-49 and hit a deer, what insurance coverage will pay for the damages?
Uninsured motorist?
Comprehensive
Collision
Liability
Which type of insurance is needed to cover the damage?
You hit a pothole and damaged your car.
Comprehensive insurance
Liability insurance
Collision insurance
Personal Injury Protection
Al's windshield cracked and a replacement costs $450.
Deductible = $1000 How much does Al pay?
$0
$1,000
$1,450
$450
