A.) $504.24
B.) $523.50
C.) $551.76
D.) $528.00
Get the Correct ANSWER
$504.24
In auto insurance, a higher deductible means the customer _____.
A.) has a higher monthly bill, but pays less out of pocket in the event of an accident.
B.) has a higher monthly bill and pays more out of pocket in the event of an accident.
C.) has a lower monthly bill and pays less out of pocket in the event of an accident.
D.) has a lower monthly bill, but pays more out of pocket in the event of an accident.
Get the Correct ANSWER
has a lower monthly bill, but pays more out of pocket in the event of an accident.
In auto insurance, a lower deductible means the customer _____.
A.) has a higher monthly bill, but pays less out of pocket in the event of an accident.
B.) has a lower monthly bill, but pays more out of pocket in the event of an accident.
C.) has a lower monthly bill and pays less out of pocket in the event of an accident.
D.) has a higher monthly bill and pays more out of pocket in the event of an accident.
Get the Correct ANSWER
has a higher monthly bill, but pays less out of pocket in the event of an accident.
What is the basic difference between liability insurance and collision insurance?
A.) Liability insurance protects against theft or vandalism, and collision insurance covers against accidents or crashes.
B.) Liability insurance is optional, but most states require collision insurance.
C.) Liability insurance covers damage that you cause, and collision insurance covers damage done to your vehicle.
D.) Liability insurance covers only medical injuries, and collision insurance covers only property damage.
Get the Correct ANSWER
Liability insurance covers damage that you cause, and collision insurance covers damage done to your vehicle.
If you get into a car accident, your _______________ may increase because you will be considered riskier for insurance companies to cover.
A.) insurance premium
B.) claims adjustment
C.) car loan payment
D.) taxes
Get the Correct ANSWER
insurance premium
What is no-fault insurance?
A.) No-fault insurance covers medical expenses incurred after an accident, regardless of which driver caused the crash.
B.) No-fault insurance provides full coverage for the entire car.
C.) No-fault insurance covers only damages that you did not cause.
D.) No-fault insurance is the default insurance that all drivers receive if they do not wish to purchase a special policy.
Get the Correct ANSWER
No-fault insurance covers medical expenses incurred after an accident, regardless of which driver caused the crash.
Which of the following is not a factor that affects your auto insurance premiums?
A.) the color of your car
B.) year, make, and model of your car
C.) where you live
D.) overall value of your car
Get the Correct ANSWER
the color of your car
Because of an accident Royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%. His original policy was set up using the premiums listed below. What is his new annual premium after the increase for the accident?
A.) $543.00
B.) $548.20
C.) $571.24
D.) $514.76
Get the Correct ANSWER
$571.24
After being involved in a car accident last month, Ralph's insurance company has increased his annual premium by $105.38. Approximately what change will Ralph see on his future monthly statements as a result of the change?
A.) Ralph's monthly insurance payment will increase by $8.78.
B.) Ralph's monthly insurance payment will not change.
C.) Ralph's monthly insurance payment will increase by $17.56.
D.) Ralph's monthly insurance payment will increase $105.38.
Get the Correct ANSWER
Ralph's monthly insurance payment will increase by $8.78.
The auto insurance plans available from Fret-No-More Auto Insurance are outlined in the table below. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the cheapest insurance plan available from Fret-No-More that is considered full coverage?
A.) $473.16
B.) $490.72
C.) $715.33
D.) $732.89
Get the Correct ANSWER
$473.16
Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More?
A.) $572.19
B.) $473.16
C.) $732.89
D.) $831.92
Get the Correct ANSWER
$831.92
Auto insurance options offered by AA Auto Insurance are outlined in the table below. What monthly payment would you expect for an insurance policy through AA Auto Insurance with the following options?
Bodily Injury: $25/50,000
Property Damage: $25,000
Collision: $250 deductible
Comprehensive: $100 deductible
A.) $64.44
B.) $43.23
C.) $46.10
D.) $54.85
Get the Correct ANSWER
$54.85
Which of the following is not considered one of the four basic types of auto insurance?
A.) Legal Responsibility
B.) Collision
C.) Bodily Injury
D.) Property Damage
Get the Correct ANSWER
Legal Responsibility
Which of the following statements is not something you should be thinking when considering changes in your auto insurance policy?
A.) Higher deductibles mean lower premiums but more out-of-pocket expense in the event of an accident.
B.) The premium you pay guarantees that you will never have to pay more than your deductible in the event of an accident.
C.) The more types of insurance you include in your policy, the more protected you are from financial loss in the event of an accident.
D.) Lower coverage limits mean lower premiums but more restrictions on the insurance company when covering injuries and damage resulting from an accident.
Get the Correct ANSWER
The premium you pay guarantees that you will never have to pay more than your deductible in the event of an accident.
Check out Auto Insurance Quiz 2
Which of the following is not a reason young drivers have higher auto insurance premiums than older drivers?
A.) A very high percentage of teen deaths have been the result of motor vehicle crashes.
B.) A very high percentage of teenage drivers have had an accident in the first year of receiving a license.
C.) Accidents involving teenage drivers have required additional investigation, the cost of which is passed on to the driver in the form of a higher premium.
D.) Accidents involving teenage drivers have resulted in billions of dollars of medical expenses and property damage in recent years.
Get the Correct ANSWER
Accidents involving teenage drivers have required additional investigation, the cost of which is passed on to the driver in the form of a higher premium.
Types of Car Insurance
There are many types of coverage within a car insurance policy, but many of them are optional (depending on which state you live in). Knowing what type of coverage applies in a given situation can be crucial to ensuring you have the right type of coverage to protect you from any situation you might encounter.
Part I: Name that Coverage
Read the description below, and correctly identify the type of coverage. Use the video “Understanding 5 Types of Car Insurance Coverage” as a reference to help make your decisions.
A.) Collision Coverage
B.) Comprehensive Coverage
C.) PERSONAL INJURY PROTECTION
D.) LIABILITY COVERAGE
E.) Uninsured/Underinsured Coverage
Get the Correct ANSWER
Collision Coverage
You are hit in an accident by another driver. At the hospital, you discover the other driver doesn’t have insurance to cover your medical bills. That’s when I kick in!
A.) Collision Coverage
B.) Comprehensive Coverage
C.) PERSONAL INJURY PROTECTION
D.) LIABILITY COVERAGE
E.) Uninsured/Underinsured Coverage
Get the Correct ANSWER
Uninsured/Underinsured Coverage
Doesn’t matter who was at fault, if you’re in a car accident and need your injuries paid for, I’m there for you. Simple as that. However, anything beyond your injuries and I can’t help you.
A.) Collision Coverage
B.) Comprehensive Coverage
C.) PERSONAL INJURY PROTECTION
D.) LIABILITY COVERAGE
E.) Uninsured/Underinsured Coverage
Get the Correct ANSWER
PERSONAL INJURY PROTECTION
I’m the best friend of new and/or expensive cars, because repairing even small damage can be incredibly costly. Did I mention that the damage doesn’t even have to be from an accident with another driver? Nope! If you hit an animal, or your car is stolen, or a tree falls on it, I’ve still got you covered! (But read my fine print because there are a few cases I won’t cover).
A.) Collision Coverage
B.) Comprehensive Coverage
C.) PERSONAL INJURY PROTECTION
D.) LIABILITY COVERAGE
E.) Uninsured/Underinsured Coverage
Get the Correct ANSWER
Comprehensive Coverage
I’m the one you call when you cause damage to other people and vehicles. I protect others against you in case an accident is your fault (which protects you… in your wallet). But I won’t pay for any damage to your car or body.
A.) Collision Coverage
B.) Comprehensive Coverage
C.) PERSONAL INJURY PROTECTION
D.) LIABILITY COVERAGE
E.) Uninsured/Underinsured Coverage
Get the Correct ANSWER
LIABILITY COVERAGE
Declarations Page
This is where you'll find your name, a statement of the policy period during which you are covered and the amount of premium you pay. It also includes a description of the insurance coverage provided and gives the maximum dollar limit the insurer will pay for a claim under each coverage.
Insuring Agreement
This main part of the policy describes what the insurance company will do in exchange for the premium you're paying and will also say who is covered. Everything is spelled out specifically in an attempt to avoid misunderstanding.
Conditions of the Policy
It describes your responsibilities when you have a claim, for example how much time you have to report it and what documentation you must give to the insurance company. It also explains the terms for canceling your policy—both for you and the insurer.
A.) Damage to someone else’s car
B.) Damage to your car
C.) Damage to someone else’s property
D.) Bodily injuries
Get the Correct ANSWER
damage to your car
Insurance that covers damage to your car from an accident is called _______________
A.) collision insurance.
B.) liability insurance.
C.) comprehensive insurance.
D.) uninsured motorist insurance
Get the Correct ANSWER
collision insurance.
Collision insurance is:
A.) insurance that will pay for injury to another driver and/or damage to their car if you are in an accident.
B.) insurance that will pay for damage to your car by someone who doesn’t have insurance.
C.) insurance that will cover injuries to yourself in the event of an accident.
D.) insurance that will pay to get your car fixed in the event of an accident.
Get the Correct ANSWER
insurance that will pay to get your car fixed in the event of an accident.
EXPLANATION: Collision Insurance covers damage to your vehicle when it is involved in an accident. Collision insurance will pay to get your car fixed in the event of an accident.
EXPLANATION: Collision Insurance covers damage to your vehicle when it is involved in an accident. Collision insurance will pay to get your car fixed in the event of an accident.
What does liability insurance not cover in the event of an accident?
A.) Damage to someone else’s car
B.) Damage to someone else’s property
C.) Injury to yourself
D.) Injury to the other driver
Get the Correct ANSWER
injury to yourself
An insurance premium is paid by _____________
A.) the insurance company.
B.) the claims adjuster.
C.) the government.
D.) the policyholder.
Get the Correct ANSWER
the policyholder.
An insurance premium is:
A.) the amount of money you pay for an insurance policy.
B.) a commission paid to the agency for the purchase of a policy.
C.) an extra fee you need to pay your insurance for filing a claim out of network.
Get the Correct ANSWER
the amount of money you pay for an insurance policy.
HINT: the amount of money you pay monthly/annually for an insurance policy
HINT: the amount of money you pay monthly/annually for an insurance policy
A deductible is paid by:
A deductible is paid by...
A.) the insurance company.
B.) the policyholder.
C.) the claims adjuster.
D.) the government.
Get the Correct ANSWER
the policyholder.(YOU)
An insurance deductible is:
A.) the monthly premium on an insurance policy.
B.) a commission paid to the agency for the purchase of a policy.
C.) the amount you owe before insurance will cover the rest of the bill.
D.) the contract fee applied to the monthly premium.
Get the Correct ANSWER
the amount you owe before insurance will cover the rest of the bill
When filing an insurance claim, the policyholder must pay a ________________, which is the amount you owe before insurance will cover the rest of the bill.
A.) deductible
B.) premium
C.) contract fee
D.) commission
Get the Correct ANSWER
deductible
EXPLANATION: when filing an insurance claim, the policyholder must pay a Insurance Deductible, which is the amount you owe before insurance will cover the rest of the bill
EXPLANATION: when filing an insurance claim, the policyholder must pay a Insurance Deductible, which is the amount you owe before insurance will cover the rest of the bill
Why should you purchase insurance?
A.) To prevent a financial burden in the case of an accident, theft, or another event
B.) To get a warranty on a household item
C.) To purchase monthly premiums
D.) To avoid committing a crime
Get the Correct ANSWER
to prevent a financial burden in the case of an accident, theft, or another event
How can insurance protect you from financial loss?
A.) Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.
B.) Insurance can offer easy monthly payment options for premiums.
C.) Insurance can offer low co-insurance policies.
D.) Insurance can offer warranties on household items
Get the Correct ANSWER
insurance can cover you or your property in case of an accident, theft, or another unpredictable event
EXPLANATION: Benefits of insurance to prevent a financial burden in the case of an accident, theft, or another event
EXPLANATION: Benefits of insurance to prevent a financial burden in the case of an accident, theft, or another event
What can insurance protect you from?
A.) Theft
B.) Contract fees
C.) Financial loss
D.) A and C
Get the Correct ANSWER
A and C (Theft and Financial Loss)
What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?
A.) Insurance
B.) Deductibles
C.) Warranty
D.) Liability
Get the Correct ANSWER
Insurance
An example of a risk management strategy is:
A. wearing a seat belt while driving.
B. carpooling.
C. wearing a helmet when biking.
D.) both A and C
Get the Correct ANSWER
both A and C (wearing a seat belt while driving and wearing a helmet when biking.)
Wearing a seat belt, not texting when driving, and driving carefully are all examples of:
A.) insurance policies.
B.) risk management strategies.
C.) deductibles.
D.) warranties.
Get the Correct ANSWER
Risk Management Strategies
EXPLANATION: Risk Management Strategy: using strategies to reduce the amount of risk (examples could be wearing reflective clothing while biking at night, wearing a helmet while biking, wearing a seat belt while driving)
EXPLANATION: Risk Management Strategy: using strategies to reduce the amount of risk (examples could be wearing reflective clothing while biking at night, wearing a helmet while biking, wearing a seat belt while driving)
Which is not an example of a risk management strategy?
A.) Wearing reflective clothing while biking at night
B.) Buying a new car
C.) Wearing a helmet while biking
D.) Wearing a seat belt while driving
Get the Correct ANSWER
buying a new car
Why is it important to have insurance?
A.) It's important to have insurance so people can protect themselves from losing a lot of money in the event of an unpredictable event or something happens to them or their property.
B.) So individuals can defend against the possibility of financial loss due to unpredictable event
C.) So people can engage in risky behavior without financial consequences
D.) A and B
Get the Correct ANSWER
Both A and B
Something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as:
A.) risk management.
B.) liability.
C.) warranty.
D.) insurance.
Get the Correct ANSWER
insurance
EXPLANATION: People purchase this as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property
EXPLANATION: People purchase this as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property
Liability insurance is:
A.) insurance that will pay for injury to another driver and/or damage to their car if you are in an accident.
B.) insurance that will pay for damage done by someone who doesn't have insurance.
C.) Insurance that will cover injuries to yourself in the event of an accident.
D.) insurance that will pay for damage to your car in the event of an accident.
Get the Correct ANSWER
insurance that will pay for injury to another driver and/or damage to their car if you are in an accident
Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called:
A.) comprehensive insurance.
B.) liability insurance.
C.) collision insurance.
D.) uninsured motorist insurance.
Get the Correct ANSWER
liability insurance
✅ ANSWERED, Verified
Also find Understanding and Comparing Types of Car Insurance 2 - Auto Insurance Quiz Answers
No comments:
Post a Comment