Insurance and Financial Responsibility Flashcards

Which type of coverage pays to repair your own car after you hit a guardrail on the Glenn Highway?

Answer: Collision coverage

Collision coverage pays for damage to your own vehicle from striking an object or another vehicle.

Which coverage would pay if a moose damages your parked car or it is stolen in Fairbanks?

Answer: Comprehensive coverage

Comprehensive coverage pays for non-collision losses like animal strikes, theft, vandalism, and weather damage.

What does uninsured motorist coverage protect you against in Alaska?

Answer: Losses caused by a driver who has no insurance

Uninsured motorist coverage pays for your injuries and losses when the at-fault driver has no insurance.

You lend your insured car to a licensed friend who causes a crash. Whose insurance typically pays first?

Answer: The insurance on the vehicle (the owner's policy)

Auto insurance generally follows the vehicle, so the owner's policy typically responds first.

If you cause a crash and the victim's damages exceed your liability limits, what can happen?

Answer: You can be held personally responsible for the amount above your limits

Damages exceeding your policy limits can become your personal financial responsibility.

Why might an Alaska driver choose liability limits higher than the state minimum 50/100/25?

Answer: To protect personal assets from claims that exceed minimum limits

Higher limits protect your savings and assets when crash damages exceed minimum coverage.

What is a deductible on an auto insurance policy?

Answer: The amount you pay out of pocket before your coverage pays a claim

A deductible is your share of a covered loss paid before the insurer pays the rest.