OMV Insurance Requirements 4

Question 1

How does adding a teen driver to your policy typically affect your premium?

Accepted Answer

The premium usually increases significantly

Answer

It has no effect on the premium

Answer

The premium usually decreases due to family discounts

Answer

The insurer issues a separate policy automatically

Question 2

What does 'medical payments coverage' (MedPay) typically pay for?

Accepted Answer

Medical and funeral expenses for you and your passengers, regardless of fault

Answer

Damage to the other driver's car

Answer

Only the other driver's medical bills

Answer

Long-term disability payments

Question 3

Which factor does NOT typically affect your auto insurance premium?

Accepted Answer

The color of your vehicle

Answer

Your driving record

Answer

Your credit score in most states

Answer

Your age and gender

Question 4

If your vehicle is totaled in an accident, what does your insurer typically pay?

Accepted Answer

The actual cash value (ACV) of the vehicle at the time of the loss

Answer

The original purchase price of the vehicle

Answer

The cost to buy a brand-new equivalent vehicle

Answer

Whatever repair estimate you provide

Question 5

What is 'gap insurance' and when is it most useful?

Accepted Answer

Coverage that pays the difference between what you owe on a car loan and its ACV if totaled

Answer

Insurance that covers gaps in your health coverage

Answer

Insurance for parking gaps and minor dents

Answer

A policy that covers gaps between insurance renewals

Question 6

What does 'SR-22' refer to in the context of auto insurance?

Accepted Answer

A certificate proving you carry the required minimum insurance, often required after serious violations

Answer

A type of high-performance vehicle classification

Answer

A federal safety rating for insurance companies

Answer

A no-fault insurance form filed in all states

Question 7

Which of the following actions can cause your auto insurance to be cancelled mid-policy?

Accepted Answer

Committing fraud on your insurance application

Answer

Moving to a new address

Answer

Adding a vehicle to your policy

Answer

Changing your payment method