The Importance of Auto Insurance Quiz
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Questions and Answers

Which of the following is a reason why you need auto insurance?

  • To protect your assets (correct)
  • To save money on car repairs
  • To fulfill state requirements
  • To avoid accidents

How often does the car insurance industry estimate that the average driver will be in a car crash?

  • Every 5 years
  • Every 10 years
  • Every 17 years (correct)
  • Every 20 years

What is auto insurance?

  • A tool to save money on car repairs
  • A way to avoid accidents
  • A contract between you and the insurance company (correct)
  • A legal requirement for all drivers

Which type of car insurance coverage is required in most states?

<p>Liability insurance (D)</p> Signup and view all the answers

What does collision coverage do?

<p>Pays for the repairs or replacement of your car if you cause an accident (A)</p> Signup and view all the answers

When is comprehensive coverage necessary?

<p>When your car is stolen or damaged by weather or vandalism (A)</p> Signup and view all the answers

Which type of insurance covers medical expenses for you and your passengers regardless of who is at fault in an accident?

<p>Personal injury protection (PIP) (C)</p> Signup and view all the answers

In how many states is personal injury protection (PIP) required?

<p>15 states (C)</p> Signup and view all the answers

What does uninsured motorist coverage pay for?

<p>Medical bills caused by uninsured drivers (B)</p> Signup and view all the answers

How does selecting a higher deductible affect the cost of insurance?

<p>Decreases the cost of insurance (D)</p> Signup and view all the answers

True or false: Personal injury protection (PIP) is required in all states?

<p>False (B)</p> Signup and view all the answers

True or false: Uninsured motorist coverage is required in about half the states?

<p>True (A)</p> Signup and view all the answers

True or false: The more you drive, the higher your insurance premium?

<p>True (A)</p> Signup and view all the answers

Match the following insurance coverages with their descriptions:

<p>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</p> Signup and view all the answers

Match the following factors with their impacts on insurance cost:

<p>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</p> Signup and view all the answers

Match the following terms with their definitions:

<p>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</p> Signup and view all the answers

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