A car insurance policy can consist of multiple parts, each paying for a different type of problem. If you don’t understand all the parts, you might not know what your current policy covers. And that sets you up for a bad surprise if you’re in a car accident.
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To help identify your knowledge gaps, see if you can answer these 10 questions correctly:
1. Let’s say you’re driving down a road one night when suddenly a deer appears, and you hit it. What type of insurance pays for the repairs to your car?
A. Gap insurance
B. Comprehensive insurance
C. Hit-and-run insurance
B. Comprehensive insurance
C. Hit-and-run insurance
Answer
B, comprehensive insurance. It also pays for problems such as vandalism, hail damage and car theft.
2. Word scramble! This kind of car insurance pays for the damage you do to others: BILAYLITI
Answer
Liability. Learn more about what car insurance covers.
3. If you were in a car accident yesterday, can you buy insurance for it today?
A. Yes
B. No
C. Maybe, depending on local laws
B. No
C. Maybe, depending on local laws
Answer
B. There’s no retroactive car insurance.
4. What’s the name of the insurance that pays your medical bills if someone crashes into you and they don’t have auto insurance?
A. Gap insurance
B. Collision insurance
C. Uninsured motorist coverage
B. Collision insurance
C. Uninsured motorist coverage
Answer
C, uninsured motorist coverage.
5. Which one of these is never a factor in car insurance rates?
A. Where you went to college
B. Your religion
C. Your credit
D. Whether you own a home
B. Your religion
C. Your credit
D. Whether you own a home
Answer
B. Religion is not allowed as a factor in setting rates. Some insurers use education level in pricing, and occasionally give discounts based on where you went to college. The use of credit in car insurance pricing is banned only in California, Hawaii and Massachusetts. Car insurers often use home ownership as a way of judging whether you’ll make a claim, giving better rates to homeowners. Take a look a how drivers with poor credit pay higher insurance rates in most states.
6. Insurance has a lot of acronyms. Maybe too many. What’s PIP?
A. Personal injury protection
B. Private insurance for passengers
C. Property insurance penalty
B. Private insurance for passengers
C. Property insurance penalty
Answer
A, personal injury protection.
7. Could you be the insurance policyholder for your mother’s car?
A. Yes
B. No
B. No
Answer
B. Generally only the car’s owner can buy the insurance on it.
8. Imagine your car slides on ice, hits a tree and has substantial front damage. What type of car insurance pays for repairs?
A. Collision insurance
B. Roadside assistance coverage
C. Comprehensive insurance
B. Roadside assistance coverage
C. Comprehensive insurance
Answer
A, collision insurance.
9. Fill in the blanks with the correct word choices: If you drive your friend’s car and crash it, (1) insurance will be tapped first to pay for damages and he will be (2) .
1. Your/His
2. Happy/Mad
2. Happy/Mad
Answer
If you drive your friend’s car and crash it, his insurance will be tapped first to pay for damages and he will be mad.
10. Last one. How about a little Hangman: If you have an unresolved complaint about your car insurance company, who should you call?
__ T__TE __ N __ U __ __ N __ E DE __ __ __ T __ ENT
Answer
State insurance department.
How did you do?
- 0-4 right: It’s worth checking your car insurance policy to make sure you understand what you bought — and didn’t buy.
- 5-7 right: Not too bad, but consider reviewing your car insurance policy with someone more knowledgeable.
- 8-9 right: You have a good handle on the basics.
- 10 right: We assume you’re an insurance agent.
Thanks for playing!
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