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 is Medical Payments (MedPay) coverage?
Answer: Coverage that pays medical expenses for you and your passengers regardless of fault
Medical Payments coverage pays for medical expenses for you and your passengers regardless of who caused the accident, whether you are in your car or someone else's.
How long are drivers typically required to maintain an SR-22 filing after a qualifying offense?
Answer: 3 years
Most states require drivers to maintain SR-22 filing for approximately 3 years, though the exact duration varies by state and the nature of the offense.
Which additional coverages do lenders typically require when a vehicle is financed?
Answer: Both collision and comprehensive coverage
Lenders require both collision and comprehensive coverage to protect their financial interest in the vehicle, which serves as collateral for the loan.
What is the primary purpose of gap insurance?
Answer: To cover the difference between a vehicle's actual cash value and the amount still owed on a loan if the car is totaled
Gap insurance pays the difference between what your car is worth at the time of loss and what you still owe on your loan or lease if the vehicle is totaled or stolen.
What do financial responsibility laws require of vehicle owners and drivers?
Answer: To demonstrate the ability to pay for damages caused to others through required insurance or other approved means
Financial responsibility laws require that drivers prove they can pay for damages or injuries they cause to others, typically by carrying the state's minimum liability insurance.
Which of the following is true about electronic proof of insurance?
Answer: Most states now accept electronic proof of insurance displayed on a smartphone
The majority of U.S. states have passed laws allowing drivers to show proof of insurance electronically on a mobile device when requested by law enforcement.
Which of the following actions could most likely result in cancellation of your auto insurance policy?
Answer: Repeated traffic violations or consistent non-payment of premiums
Insurers can cancel or non-renew policies for reasons such as repeated traffic violations, DUI convictions, or failure to pay premiums on time.