DONE - ★ Driver's Ed Module 11: Consumer Responsibility Test Answers 1

When can an insurance company cancel your policy? Select one:
A.) you fail to pay your premium
B.) your driver's license is suspended or revoked
C.) you file a fraudulent claim
D.) all of the above

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all of the above

What are five factors that insurance companies use to determine insurance rates? Select one:
A.) marital status, age, driving record, type of car and claims history
B.) car's primary use, your credit score, color of car, where you live and driving record
C.) type of car, marital status, size of engine, color of car and driving record
D.) all of the above

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marital status, age, driving record, type of car and claims history

Three examples of insurance discounts include: Select one:
A.) defensive driving course, students with good grades, anti-theft devices
B.) airbags and automatic seatbelts, high school senior, daytime running lights
C.) two or more cars on the same policy, driver education course, wide tires
D.) all of the above

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defensive driving course, students with good grades, anti-theft devices

When must you show proof of financial responsibility? Select one:
A.) when asked by law enforcement
B.) have a collision that results in injury or property damage of $1,000
C.) register or get your car inspected
D.) all of the above

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all of the above

What is the current minimum liability coverage required by the state? Select one:
A.) 50/100/50
B.) 30/60/25
C.) 25/25/25
D.) 50/50/25

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30/60/25

Expenses of vehicle ownership include: Select one:
A.) purchase price
B.) financing cost
C.) insurance cost
D.) parking fees
E.) A & C
F.) A, B & C
G.) all of the above

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A, B & C

High risk drivers pay lower premiums for insurance than other drivers
A.) TRUE
B.) FALSE

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FALSE

Many insurance companies offer a discount if the vehicle is equipped with an anti-theft device
A.) TRUE
B.) FALSE

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TRUE

Most insurance companies will lower your premiums if you maintain a good driving record
A.) TRUE
B.) FALSE

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TRUE

If your vehicle is stolen, comprehensive insurance will pay for you to replace it with a comparable vehicle.
A.) TRUE
B.) FALSE

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TRUE

Most young drivers buy new cars.
A.) TRUE
B.) FALSE

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TRUE

Young drivers have higher insurance premiums because, statistically, young drivers have more crashes than more inexperienced drivers
A.) TRUE
B.) FALSE

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TRUE

Current liability insurance limits are $25,000, $50,000 and $25,000
A.) TRUE
B.) FALSE

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TRUE

If you are buying a used vehicle from a dealer, you should have a mechanic inspect it
If you are buying a used vehicle from a dealer, you should inspect it completely.
A.) TRUE
B.) FALSE

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TRUE

A fresh coat of paint on a used vehicle always indicates the vehicle is in good condition
A fresh coat of paint on a used vehicle indicates that the vehicle is in good condition.
A.) TRUE
B.) FALSE

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FALSE

When buying a new car, you always have to pay the sticker price
A.) TRUE
B.) FALSE

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FALSE

The base price of a new car is the cost of the car without added options
A.) TRUE
B.) FALSE

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TRUE

Buying a used car sometimes involves more risks than buying a new car
Buying a used car involves more risks than buying a new car.
A.) TRUE
B.) FALSE

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TRUE

It is best to discuss a trade-in after you negotiate the best possible price for the vehicle you are purchasing
A.) TRUE
B.) FALSE

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TRUE

Whether buying from a used car dealer or private owner, you should always inspect the vehicle thoroughly.
A.) TRUE
B.) FALSE

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TRUE

The invoice price of a new car is the cost of the car without options.
A.) TRUE
B.) FALSE

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FALSE

The base price of a new car is the cost of the car without options.
A.) TRUE
B.) FALSE

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TRUE

When buying a new vehicle, you will probably get more money for your old vehicle if you trade it in rather than selling it yourself.
A.) TRUE
B.) FALSE

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FALSE

When buying a new vehicle, you must finance it through the dealer.
A.) TRUE
B.) FALSE

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FALSE

When looking to buy a vehicle what question(s) should you ask yourself? Select one:
A.) How much? Do I need a car? New or used?
B.) How economical is it? What options do I need?
C.) What safety features are needed?
D.) All of the above

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All of the above

When should you discuss trading in your vehicle? Select one:
A.) only after you have negotiated the best price for your new car
B.) if that is the only way you can make the deal
C.) only if the new car costs too much
D.) after you find the vehicle you want to purchase

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only after you have negotiated the best price for your new car