16 Questions
Which of the following is a reason why you need auto insurance?
To protect your assets
How often does the car insurance industry estimate that the average driver will be in a car crash?
Every 17 years
What is auto insurance?
A contract between you and the insurance company
Which type of car insurance coverage is required in most states?
Liability insurance
What does collision coverage do?
Pays for the repairs or replacement of your car if you cause an accident
When is comprehensive coverage necessary?
When your car is stolen or damaged by weather or vandalism
Which type of insurance covers medical expenses for you and your passengers regardless of who is at fault in an accident?
Personal injury protection (PIP)
In how many states is personal injury protection (PIP) required?
15 states
What does uninsured motorist coverage pay for?
Medical bills caused by uninsured drivers
How does selecting a higher deductible affect the cost of insurance?
Decreases the cost of insurance
True or false: Personal injury protection (PIP) is required in all states?
False
True or false: Uninsured motorist coverage is required in about half the states?
True
True or false: The more you drive, the higher your insurance premium?
True
Match the following insurance coverages with their descriptions:
Comprehensive Coverage = Required if you have a lienholder Personal Injury Protection (PIP) = Covers medical expenses for you and your passengers regardless of who is at fault Uninsured Motorist Coverage = Pays for your medical bills and car repairs if an uninsured driver causes an accident Deductibles = A pre-determined amount of money that you agree to pay before the insurance company will pay a claim
Match the following factors with their impacts on insurance cost:
Driving Record = Any driving tickets, accidents and/or claims within recent years will increase your premium Age and Gender = Younger drivers and males often pay a higher rate for insurance Usage, Type of Car, and Zip Code = The number of miles you drive per year, the type of vehicle, and where you live can all affect your premiums Deductibles = The higher your deductibles, the lower your premium or cost of insurance
Match the following terms with their definitions:
Premium = The cost of your insurance policy Deductible = A pre-determined amount of money that you agree to pay before the insurance company will pay a claim Uninsured Motorist Coverage = Insurance that pays for your medical bills and car repairs if an uninsured driver causes an accident Personal Injury Protection (PIP) = Often referred to as “no-fault insurance,” it covers medical expenses for you and your passengers due to an accident regardless of who is at fault
Test your knowledge on auto insurance and its importance in this quiz. Learn about the reasons why car insurance is essential for drivers, and the potential risks and costs associated with accidents.
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