Auto Insurance Quiz 1

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.

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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.

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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.

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Liability insurance covers damage that you cause, and collision insurance covers damage done to your vehicle.

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.

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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

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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

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$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.

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Ralph's monthly insurance payment will increase by $8.78.

After reviewing her driving record for the past 3 years, Cindy's insurance company offers her a good driver discount of 4.5%. Her original policy was based on the premiums listed below. What is her new annual premium including the discount?
A.) $504.24
B.) $523.50
C.) $551.76
D.) $528.00

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$504.24

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

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$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

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$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

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$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

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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.

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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.

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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.

The purpose of driving safety program is to increase road safety awareness by reducing traffic violations and to keep your auto insurance premiums low. Handle Speeding ticket, stop sign citation, lawyer for fighting traffic tickets & other violations.



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