Motor Vehicle Division Insurance Requirements

Question 1

What does liability insurance cover in an auto insurance policy?

Accepted Answer

Damage and injuries you cause to others in an accident

Answer

Liability insurance covers bodily injury and property damage that you cause to others, not damage to your own vehicle.

Question 2

What is the primary purpose of uninsured motorist (UM) coverage?

Accepted Answer

To protect you when hit by a driver with no insurance

Answer

Uninsured motorist coverage protects you when you are involved in an accident caused by a driver who has no auto insurance.

Question 3

Which document is commonly accepted as proof of insurance when requested by law enforcement?

Accepted Answer

Insurance identification card

Answer

An insurance identification card issued by the insurer is the standard document used to prove financial responsibility to law enforcement.

Question 4

What is a common consequence of driving without proof of insurance?

Accepted Answer

Fines, license suspension, and possible vehicle impoundment

Answer

Driving without insurance typically results in fines, possible license suspension, and vehicle impoundment, depending on state law.

Question 5

In auto insurance, what does a '25/50/25' policy limit mean?

Accepted Answer

$25,000 per person bodily injury, $50,000 per accident bodily injury, $25,000 property damage

Answer

The 25/50/25 notation means $25,000 per injured person, $50,000 per accident for all bodily injuries combined, and $25,000 for property damage.

Motor Vehicle Division Practice Test