Insurance and Financial Responsibility Flashcards
7 cards from real NC DMV 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 and Financial Responsibility flashcards as text
Liability insurance is designed primarily to pay for:
Answer: Injuries and property damage you cause to others
Liability coverage pays for harm you cause to other people and their property, not your own losses.
In a policy described as 50/100/50, the middle number refers to:
Answer: The maximum bodily injury coverage for all persons in one accident
The second number is the total bodily injury limit for everyone injured in a single accident.
Which type of coverage would pay to repair your own car after you hit a guardrail, with no other vehicle involved?
Answer: Collision coverage
Collision coverage pays for damage to your own vehicle from a crash, regardless of fault.
Which coverage pays for damage to your car from hail, flooding, or a deer strike?
Answer: Comprehensive coverage
Comprehensive coverage handles non-collision losses such as weather, animals, and theft.
You cause a crash and the other driver's injuries cost more than your bodily injury liability limits. What happens to the amount above your limits?
Answer: You can be held personally responsible for it
Damages exceeding your policy limits can be collected from you personally.
Which of these is a reason to carry liability limits higher than the state minimum?
Answer: Serious crashes can easily cause damages beyond minimum limits
Higher limits protect your personal assets when crash costs exceed the state minimums.
If you lend your insured car to a licensed friend and they cause a crash, whose liability insurance generally applies first in North Carolina?
Answer: Yours, because insurance typically follows the vehicle
In North Carolina, liability coverage generally follows the vehicle, so the owner's policy pays first.