Insurance Requirements Flashcards
7 cards from real Motor Vehicle Division practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Insurance Requirements flashcards as text
What does collision coverage pay for?
Answer: Damage to your own vehicle resulting from a collision with another vehicle or object
Collision coverage pays to repair or replace your own vehicle when it is damaged in a collision with another vehicle or stationary object.
Which type of coverage protects your vehicle from non-collision events such as theft, weather damage, or fire?
Answer: Comprehensive coverage
Comprehensive coverage protects your vehicle against losses from events other than collisions, including theft, fire, flood, vandalism, and natural disasters.
What is a deductible in an auto insurance policy?
Answer: The amount you must pay out of pocket before insurance covers the rest
A deductible is the amount the policyholder must pay first before the insurance company pays the remaining covered claim amount.
What does underinsured motorist (UIM) coverage provide?
Answer: Protection when you are hit by a driver whose insurance is insufficient to cover your damages
Underinsured motorist coverage pays the difference between the at-fault driver's liability limits and your actual damages when their insurance is not enough.
What is Personal Injury Protection (PIP) coverage?
Answer: Insurance that covers medical expenses and lost wages for you regardless of fault
PIP pays for medical expenses, lost wages, and other costs for you and your passengers regardless of who caused the accident.
In which situations must a driver typically show proof of insurance?
Answer: When requested by law enforcement, at registration renewal, and after an accident
Drivers are required to provide proof of insurance when stopped by law enforcement, when registering or renewing a vehicle, and when involved in an accident.
What typically happens to your vehicle registration if your auto insurance policy lapses?
Answer: The MVD is notified and your registration may be suspended until insurance is reinstated
Most states require continuous insurance coverage, and insurers are required to notify the MVD when a policy lapses, which can result in registration suspension.