Define auto insurance.
A contract that protects against financial loss from accidents or theft involving a vehicle.
What does liability coverage protect against?
It covers damages to other people or property if you are at fault in an accident.
True or false: Comprehensive coverage includes theft protection.
TRUE
Comprehensive coverage protects against non-collision incidents like theft, vandalism, and natural disasters.
Fill in the blank: Collision coverage pays for damage to your vehicle from _______.
an accident
What is a deductible in auto insurance?
The amount you pay out of pocket before insurance covers the rest of a claim.
Define premium.
The amount you pay for your auto insurance policy, usually monthly or annually.
What is uninsured motorist coverage?
Insurance that protects you if you’re in an accident with a driver who has no insurance.
True or false: Personal injury protection covers medical expenses for passengers.
TRUE
Personal injury protection (PIP) can cover medical costs for you and your passengers, regardless of fault.
Fill in the blank: Gap insurance covers the difference between your car’s value and _______.
the loan amount
What is the purpose of roadside assistance in auto insurance?
To provide help for breakdowns, flat tires, or other emergencies while driving.
Define no-fault insurance.
A system where each party’s insurance covers their own damages regardless of fault.
What does full coverage typically include?
Liability, collision, and comprehensive insurance to protect against various risks.
True or false: State minimum coverage is the same in every state.
FALSE
Each state has different minimum coverage requirements for auto insurance.
Fill in the blank: Underinsured motorist coverage protects you if the other driver has _______.
insufficient insurance
What is usage-based insurance?
Insurance that adjusts premiums based on driving behavior and mileage tracked by a device.
Define exclusions in an auto insurance policy.
Specific situations or conditions that are not covered by the insurance policy.
What does medical payments coverage cover?
It pays for medical expenses for you and your passengers after an accident.
True or false: Rental reimbursement coverage pays for a rental car while yours is in the shop.
TRUE
Rental reimbursement coverage helps cover the cost of a rental vehicle while your car is being repaired.
Fill in the blank: Towing coverage helps pay for _______ if your car breaks down.
towing services
What is insurance fraud?
The act of deceiving an insurance company to receive benefits or payouts unlawfully.
Define risk assessment in auto insurance.
The process of evaluating the likelihood of a claim based on various risk factors.
What is a policy limit?
The maximum amount an insurance company will pay for a covered claim.
True or false: Bundling auto insurance with home insurance can save money.
TRUE
Many insurers offer discounts for bundling multiple policies together.
Fill in the blank: SR-22 is a document proving you have _______.
minimum required insurance
