Geico Assessment Test Geico Knowledge 3 — Questions and Answers
Question 1: Which of the following is NOT a typical type of coverage offered in an auto insurance policy?
- Liability coverage
- Collision coverage
- Comprehensive coverage
- Mortgage coverage (Correct answer)
Correct answer: Mortgage coverage
Mortgage coverage relates to home loans, not auto insurance policies.
Question 2: In insurance, what is a 'deductible'?
- The amount the insurer pays first
- The amount the policyholder pays before insurance covers the rest (Correct answer)
- A monthly bonus
- The agent's commission
Correct answer: The amount the policyholder pays before insurance covers the rest
A deductible is the out-of-pocket amount the policyholder pays before the insurer covers the remaining cost of a claim.
Question 3: What is a 'premium' in insurance terms?
- The payment made to keep a policy active (Correct answer)
- The total claim payout
- A type of discount
- The deductible amount
Correct answer: The payment made to keep a policy active
A premium is the amount a policyholder pays, often monthly or annually, to maintain coverage.
Question 4: Liability coverage in an auto policy primarily protects against what?
- Damage to your own car from theft
- Costs when you are at fault for others' injuries or property damage (Correct answer)
- Medical bills for your passengers only
- Wear and tear on your tires
Correct answer: Costs when you are at fault for others' injuries or property damage
Liability coverage pays for injuries and property damage you cause to others when you are at fault.
Question 5: Besides auto, GEICO also offers policies for which of the following?
- Homeowners and renters insurance (Correct answer)
- Pet adoption services
- Stock trading
- Mobile phone plans
Correct answer: Homeowners and renters insurance
GEICO offers a range of products including homeowners, renters, motorcycle, and umbrella insurance.
Question 6: What is comprehensive auto coverage designed to pay for?
- Damage from collisions with other cars
- Non-collision damage like theft, fire, or hail (Correct answer)
- Your monthly premium
- Routine oil changes
Correct answer: Non-collision damage like theft, fire, or hail
Comprehensive coverage handles non-collision losses such as theft, vandalism, fire, and weather damage.
Question 7: Which factor commonly affects an auto insurance premium?
- The policyholder's driving record (Correct answer)
- The color of the car only
- The customer's favorite food
- The day of the week
Correct answer: The policyholder's driving record
Driving history, including accidents and violations, is a major factor in determining premiums.
Geico Assessment Test Geico Knowledge 3
Which of the following is NOT a typical type of coverage offered in an auto insurance policy?