OMV Insurance Requirements 3 — Questions and Answers
Question 1: What is a 'deductible' in an auto insurance policy?
- The maximum amount your insurer will pay
- The amount you pay out-of-pocket before insurance covers the rest (Correct answer)
- A discount for safe driving
- The monthly premium amount
Correct answer: The amount you pay out-of-pocket before insurance covers the rest
A deductible is the portion of a claim you must pay yourself before your insurance company pays the remaining costs.
Question 2: Which document proves you have the required minimum insurance when stopped by law enforcement?
- Vehicle title
- Driver's license
- Proof of insurance card (Correct answer)
- Vehicle registration only
Correct answer: Proof of insurance card
A proof of insurance card (physical or digital) is the standard document required to show law enforcement during a traffic stop.
Question 3: What is 'bodily injury liability' coverage designed to pay for?
- Your own hospital bills after a crash
- Medical costs and lost wages of others you injure (Correct answer)
- Damage to your car's interior
- Funeral costs for passengers in your vehicle
Correct answer: Medical costs and lost wages of others you injure
Bodily injury liability covers medical expenses, lost income, and legal costs for people you injure in an at-fault accident.
Question 4: A policy with limits of 25/50/20 means property damage liability covers up to how much per accident?
- $25,000
- $50,000
- $20,000 (Correct answer)
- $95,000
Correct answer: $20,000
In a split-limit policy, the third number represents the property damage liability limit per accident, which is $20,000 in this case.
Question 5: What is 'personal injury protection' (PIP) coverage?
- Coverage for damage to personal belongings in the car
- No-fault coverage that pays your medical bills regardless of who caused the accident (Correct answer)
- Insurance for legal fees in a lawsuit
- Coverage for rental car costs
Correct answer: No-fault coverage that pays your medical bills regardless of who caused the accident
PIP is a no-fault coverage that pays your medical expenses and sometimes lost wages regardless of who caused the crash.
Question 6: If you borrow a friend's car and cause an accident, whose insurance is typically the primary payer?
- Your own insurance
- The other driver's insurance
- The car owner's insurance (Correct answer)
- The state's uninsured fund
Correct answer: The car owner's insurance
Auto insurance generally follows the vehicle, so the car owner's policy is the primary coverage when someone else drives with permission.
Question 7: What is 'underinsured motorist coverage'?
- Coverage for drivers who are new to the road
- Protection when the at-fault driver's insurance isn't enough to cover your losses (Correct answer)
- A policy add-on for teen drivers
- Coverage for vehicles worth less than $5,000
Correct answer: Protection when the at-fault driver's insurance isn't enough to cover your losses
Underinsured motorist coverage pays the difference when the at-fault driver's liability limits are too low to fully compensate you.
OMV Insurance Requirements 3
What is a 'deductible' in an auto insurance policy?