The Importance of Auto Insurance Quiz

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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?

Liability insurance Signup and view all the answers

What does collision coverage do?

Pays for the repairs or replacement of your car if you cause an accident Signup and view all the answers

When is comprehensive coverage necessary?

When your car is stolen or damaged by weather or vandalism 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?

Personal injury protection (PIP) Signup and view all the answers

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

15 states Signup and view all the answers

What does uninsured motorist coverage pay for?

Medical bills caused by uninsured drivers Signup and view all the answers

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

Decreases the cost of insurance Signup and view all the answers

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

False Signup and view all the answers

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

True Signup and view all the answers

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

True Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers