5. Insurance and Risk

Auto Insurance — Quiz

Test your understanding of auto insurance with 5 practice questions.

Practice Questions

Question 1

Which of the following best describes how an insurance company determines the actual cash value (ACV) of a car after it has been totaled in an accident?

Question 2

If a driver is carrying minimum liability coverage of $25,000 for property damage and causes an accident resulting in $40,000 of damage to another vehicle, how much would the driver’s insurance typically pay?

Question 3

How is the premium of an auto insurance policy likely to change if you add an endorsement for a rental car reimbursement?

Question 4

Which of the following best describes the relationship between a driver’s credit-based insurance score and their auto insurance premium in states where it is allowed?

Question 5

Which of the following scenarios would likely result in a driver needing to file a claim under uninsured motorist property damage (UMPD) coverage, assuming they have this coverage?