VT DMV Insurance and Financial Responsibility 3

Question 1

Vermont's minimum auto insurance requirements are commonly written as which set of numbers?

Accepted Answer

25/50/10

Answer

Vermont's minimums are $25,000 per person, $50,000 per accident, and $10,000 for property damage, written as 25/50/10.

Question 2

What does liability insurance pay for?

Accepted Answer

Injuries and damage you cause to others

Answer

Liability insurance covers bodily injury and property damage you cause to other people, not your own losses.

Question 3

Which coverage pays if your parked car is damaged by a falling tree branch?

Accepted Answer

Comprehensive coverage

Answer

Comprehensive coverage pays for non-collision damage such as falling objects, fire, theft, and weather.

Question 4

In Vermont, what is required in addition to uninsured motorist coverage in every auto policy?

Accepted Answer

Underinsured motorist coverage

Answer

Vermont law requires auto policies to include both uninsured and underinsured motorist coverage.

Question 5

A driver lends their insured car to a friend who causes a crash. Whose insurance is generally the primary coverage?

Accepted Answer

The vehicle owner's insurance

Answer

Auto insurance generally follows the vehicle, so the owner's policy is usually primary when a permitted driver crashes.

(VT DMV) Vermont Department of Motor Vehicle Practice Test