AK DMV Insurance and Financial Responsibility 4

Question 1

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

Accepted Answer

Collision coverage

Answer

Property damage liability

Answer

Bodily injury liability

Answer

Comprehensive coverage

Question 2

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

Accepted Answer

Comprehensive coverage

Answer

Collision coverage

Answer

Liability coverage

Answer

Uninsured motorist coverage

Question 3

What does uninsured motorist coverage protect you against in Alaska?

Accepted Answer

Losses caused by a driver who has no insurance

Answer

Damage you cause to other vehicles

Answer

Routine maintenance costs

Answer

Parking tickets

Question 4

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

Accepted Answer

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

Answer

The friend's employer

Answer

The state of Alaska

Answer

No policy applies to borrowed cars

Question 5

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

Accepted Answer

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

Answer

The insurer must pay everything regardless of limits

Answer

The victim's costs are canceled

Answer

The DMV pays the difference

Question 6

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

Accepted Answer

To protect personal assets from claims that exceed minimum limits

Answer

Because the DMV requires it for all drivers over 30

Answer

To avoid needing a driver's license

Answer

To qualify for studded tires

Question 7

What is a deductible on an auto insurance policy?

Accepted Answer

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

Answer

The monthly payment for the policy

Answer

A state tax on vehicles

Answer

The maximum your insurer will ever pay