Car Insurance Question and Answers

Question 1

The driver of the car that hit you doesn't have insurance. What insurance policy would cover the losses?

Accepted Answer

Uninsured Motorist

Answer

Uninsured Motorist (UM) coverage protects you and your passengers if you are involved in an accident with a driver who does not have any car insurance. It covers your bodily injuries and, in some states, property damage caused by the uninsured driver, ensuring you are not left with uncompensated losses.

Question 2

Which option from the list below will lower your insurance premium?

Accepted Answer

have a good driving record

Answer

Having a good driving record demonstrates to insurers that you are a lower risk for accidents and claims. Insurers often reward safe drivers with lower premiums because they are statistically less likely to incur significant payouts, reflecting a reduced risk profile.

Question 3

What type of insurance covers for your car's damages if you are at fault?

Accepted Answer

Collision

Answer

Collision coverage in an auto insurance policy pays for damages to your own car resulting from an accident, regardless of who is at fault. This includes incidents like hitting another vehicle, an object, or rolling over, providing financial protection for your vehicle's repair or replacement.

Question 4

What insurance covers you in the event that someone is hurt in an accident you cause?

Accepted Answer

Bodily Injury

Answer

Bodily Injury Liability coverage pays for medical expenses, lost wages, and pain and suffering for others if you are at fault in an accident that causes them injury. It protects you from financial responsibility for injuries to third parties, covering their costs up to your policy limits.

Question 5

The cost of continuing insurance for a motorist is

Accepted Answer

premium

Answer

The premium is the amount of money an individual or business pays to an insurance company for coverage. It is the regular payment required to keep an insurance policy active and maintain its benefits.

Insurance Practice Test

Insurance Practice Test

Car Insurance Question and Answers