Motor Vehicle Division Insurance Requirements 2

Question 1

What does collision coverage pay for?

Accepted Answer

Damage to your own vehicle resulting from a collision with another vehicle or object

Answer

Collision coverage pays to repair or replace your own vehicle when it is damaged in a collision with another vehicle or stationary object.

Question 2

Which type of coverage protects your vehicle from non-collision events such as theft, weather damage, or fire?

Accepted Answer

Comprehensive coverage

Answer

Comprehensive coverage protects your vehicle against losses from events other than collisions, including theft, fire, flood, vandalism, and natural disasters.

Question 3

What is a deductible in an auto insurance policy?

Accepted Answer

The amount you must pay out of pocket before insurance covers the rest

Answer

A deductible is the amount the policyholder must pay first before the insurance company pays the remaining covered claim amount.

Question 4

What does underinsured motorist (UIM) coverage provide?

Accepted Answer

Protection when you are hit by a driver whose insurance is insufficient to cover your damages

Answer

Underinsured motorist coverage pays the difference between the at-fault driver's liability limits and your actual damages when their insurance is not enough.

Question 5

What is Personal Injury Protection (PIP) coverage?

Accepted Answer

Insurance that covers medical expenses and lost wages for you regardless of fault

Answer

PIP pays for medical expenses, lost wages, and other costs for you and your passengers regardless of who caused the accident.

Motor Vehicle Division Practice Test

Motor Vehicle Division Practice Test

Motor Vehicle Division Insurance Requirements 2