OMV Insurance Requirements 2 — Questions and Answers
Question 1: What does 'liability insurance' cover in an auto policy?
- Damage to your own vehicle
- Injuries and property damage you cause to others (Correct answer)
- Theft of your vehicle
- Medical bills for your own injuries
Correct answer: Injuries and property damage you cause to others
Liability insurance pays for bodily injury and property damage that you cause to other people in an accident.
Question 2: If you are caught driving without insurance, which of the following is a likely consequence?
- A verbal warning only
- License suspension and fines (Correct answer)
- Mandatory vehicle inspection
- Increase in speed limit privileges
Correct answer: License suspension and fines
Driving without insurance typically results in license suspension, fines, and possible vehicle impoundment.
Question 3: What is 'uninsured motorist coverage'?
- Coverage for your car when parked
- Protection when you're hit by a driver with no insurance (Correct answer)
- Insurance for drivers under age 25
- Coverage for off-road vehicle use
Correct answer: Protection when you're hit by a driver with no insurance
Uninsured motorist coverage protects you if you are injured by a driver who has no auto insurance.
Question 4: Which type of coverage pays for damage to your vehicle caused by events like hail, flood, or falling objects?
- Collision coverage
- Liability coverage
- Comprehensive coverage (Correct answer)
- Gap insurance
Correct answer: Comprehensive coverage
Comprehensive coverage pays for non-collision events such as weather damage, theft, vandalism, and falling objects.
Question 5: What does 'collision coverage' typically pay for?
- Medical expenses after an accident
- Damage to your car from hitting another vehicle or object (Correct answer)
- Roadside assistance calls
- Towing after a mechanical breakdown
Correct answer: Damage to your car from hitting another vehicle or object
Collision coverage pays to repair or replace your vehicle when it is damaged by a collision with another car or object.
Question 6: What happens to your insurance policy if you fail to pay your premium?
- The policy remains active for one year
- Your coverage is suspended or cancelled (Correct answer)
- The insurer pays your premium for you
- Your deductible is waived
Correct answer: Your coverage is suspended or cancelled
Failure to pay your premium results in policy cancellation or suspension, leaving you uninsured.
Question 7: In most U.S. states, which type of insurance is legally required for all registered vehicles?
- Comprehensive coverage
- Collision coverage
- Liability insurance (Correct answer)
- Gap insurance
Correct answer: Liability insurance
Liability insurance is the minimum required coverage in most states to legally operate a registered vehicle.
OMV Insurance Requirements 2
What does 'liability insurance' cover in an auto policy?