Geico Insurance 1 — Questions and Answers
Question 1: "Comprehensive coverage" includes everything except ?
- Collision damage to your vehicle (Correct answer)
- Being hit by/being hit by an animal
- Theft
- Natural catastrophes
Correct answer: Collision damage to your vehicle
Comprehensive coverage typically covers damage to your vehicle from non-collision incidents like theft, vandalism, fire, natural disasters, or hitting an animal. Collision damage, which is damage from hitting another vehicle or object, is covered by a separate 'Collision' policy.
Question 2: What exactly does "Bodily Injury (BI) Liability" involve?
- It covers your medical bills for any accident, whether you are legally responsible or not.
- It compensates people who have been injured or killed in an accident for which you are legally responsible. (Correct answer)
- It compensates for property damage caused by an accident caused by your vehicle for which you are legally liable.
- It protects you, your family, and your passengers in the event of an accident, regardless of fault.
Correct answer: It compensates people who have been injured or killed in an accident for which you are legally responsible.
Bodily Injury Liability coverage is designed to pay for medical expenses, lost wages, and pain and suffering for other people who are injured or killed in an accident where you are found to be at fault. It protects you from financial responsibility for their injuries, covering costs up to your policy limits.
Question 3: Which of the following factors does NOT affect your insurance premium?
- Driving history and experience
- The driver's age
- The color of the vehicle (Correct answer)
- Vehicle security features
Correct answer: The color of the vehicle
Car insurance premiums are calculated based on factors related to risk, such as driving history, age, vehicle type, and safety features. The color of the vehicle has no bearing on its safety, theft risk, or repair cost, and therefore does not influence insurance rates.
Question 4: If you don't own a car, you don't need car insurance.
- True
- False (Correct answer)
Correct answer: False
Even if you don't own a car, you might still need car insurance, especially if you regularly drive other people's cars, rent cars, or live in a household with other drivers. Non-owner car insurance or being listed on another policy can provide crucial liability coverage in these situations.
Question 5: Which of the following is a benefit of GEICO's "Emergency Roadside Service"?
- Jumping a dead car battery
- Using your spare tire to replace a flat tire
- Getting gas delivered when your tank is empty
- Contacting a locksmith after being locked out of your car
- All of the above (Correct answer)
Correct answer: All of the above
GEICO's Emergency Roadside Service is a comprehensive offering designed to assist drivers with common roadside issues. It typically includes a wide range of services such as jump-starting a dead battery, changing a flat tire, delivering fuel, and locksmith services for lockouts, covering various unexpected situations.
Question 6: How does "Accident Forgiveness" work?
- When you are involved in an accident that was not your fault and your insurance company does not lower your rates.
- When you have two accidents in two months and your insurance company forgives the second.
- When you are not charged a surcharge for your first at-fault accident and can keep any good driver discounts you have earned. (Correct answer)
- When you collide with another vehicle and both of you decide there isn't enough damage to file a claim.
Correct answer: When you are not charged a surcharge for your first at-fault accident and can keep any good driver discounts you have earned.
Accident Forgiveness is a policy feature that prevents your insurance rates from increasing after your first at-fault accident, provided you meet certain eligibility criteria. It allows you to maintain your good driver status and associated discounts, offering a valuable safeguard against premium hikes.
Question 7: What precisely is a "Personal Umbrella Policy"?
- It shields your vehicle from flood damage.
- It allows you to use your auto liability on your home if your homeowner's liability runs out, and vice versa.
- It protects you and your passengers in the event of an at-fault accident.
- It provides liability protection in addition to your auto and homeowners policies up to the limit you specify. (Correct answer)
Correct answer: It provides liability protection in addition to your auto and homeowners policies up to the limit you specify.
A Personal Umbrella Policy offers an extra layer of liability coverage beyond the limits of your standard auto and homeowners insurance policies. It protects your assets in the event of a major lawsuit where damages exceed the coverage of your primary policies, providing significant financial security.
Geico Insurance 1
"Comprehensive coverage" includes everything except ?