Auto Insurance Answers

Which of the following is not a factor that affects your auto insurance premiums? a. year, make, and model of your car b. where you live c. the color of your car d. overall value of your car Please select the best answer from the choices provided

Which of the following is not a reason young drivers have higher auto insurance premiums than older drivers?a.A very high percentage of teen deaths have been the result of motor vehicle crashes.b.A very high percentage of teenage drivers have had an accident in the first year of receiving a license.c.Accidents involving teenage drivers have resulted in billions of dollars of medical expenses and property damage in recent years.d.Accidents involving teenage drivers have required additional investigation, the cost of which is passed on to the driver in the form of a higher premium.

In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change? AA Auto Insurance Type of Insurance Coverage Coverage Limits Annual Premiums Bodily Injury $25/$50,000 $22.50 $50/$100,000 $31.75 $100/$300,000 $40.25 Property Damage $25,000 $120.50 $50,000 $144.75 $100,000 $193.00 Collision $100 deductible $520.00 $250 deductible $415.25 $500 deductible $275.75 Comprehensive $50 deductible $110.25 $100 deductible $100.00 a. $12.48 b. $31.31 c. $149.75 d. $275.75 Please select the best answer from the choices provided

Tracy was involved in an accident in which the other driver suffered severe injuries. The police determined that the accident was Tracy’s fault. Tracy is fully insured through her insurance company. Which of the following components of Tracy’s insurance policy will cover the injuries of the other driver?a.bodily injuryb.property damagec.collisiond.comprehensive damage

Julien was involved in an accident in which he merged into another car, damaging the front fender of the other car. Julien is fully insured through his insurance company. Which component of Julien’s insurance plan will cover the damage he caused to the other car?a.bodily injuryb.property damagec.collisiond.comprehensive damage

What is no-fault insurance? a. No-fault insurance provides full coverage for the entire car. b. No-fault insurance covers only damages that you did not cause. c. No-fault insurance is the default insurance that all drivers receive if they do not wish to purchase a special policy. d. No-fault insurance covers medical expenses incurred after an accident, regardless of which driver caused the crash. Please select the best answer from the choices provided

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie’s limits the most without increasing her monthly premium by more than $5.00? Fret-No-More Auto Insurance Type of Insurance Coverage Coverage Limits Annual Premiums Bodily Injury $25/50,000 $21.35 $50/100,000 $32.78 $100/300,000 $42.10 Property Damage $25,000 $115.50 $50,000 $142.44 $100,000 $193.78 Collision $100 deductible $490.25 $250 deductible $343.33 $500 deductible $248.08 Comprehensive $50 deductible $105.79 $100 deductible $88.23 a. Increase coverage on bodily injury to $100/300,000. b. Increase coverage on property damage to $50,000. c. Increase coverage on bodily injury to $100/300,000 and on property damage to $50,000. d. Increase coverage on bodily injury to $100/300,000 and on property damage to $100,000. Please select the best answer from the choices provided

Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered “full” coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More?Fret-No-More Auto Insurance Type of Insurance CoverageCoverage LimitsAnnual PremiumsBodily Injury $25/50,000$21.35 $50/100,000$32.78 $100/300,000$42.10 Property Damage$25,000 $115.50 $50,000 $142.44 $100,000 $193.78 Collision$100 deductible$490.25 $250 deductible$343.33 $500 deductible$248.08 Comprehensive$50 deductible$105.79 $100 deductible$88.23 a.$473.16b.$572.19c.$732.89d.$831.92

Auto insurance options offered by AA Auto Insurance are outlined in the table below. What monthly payment would you expect for an insurance policy through AA Auto Insurance with the following options?Bodily Injury: $25/50,000Property Damage: $25,000Collision: $250 deductibleComprehensive: $100 deductibleAA Auto Insurance Type of Insurance CoverageCoverage LimitsAnnual PremiumsBodily Injury $25/$50,000$22.50 $50/100,000$31.75 $100/300,000$40.25 Property Damage$25,000 $120.50 $50,000 $144.75 $100,000 $193.00 Collision$100 deductible$520.00 $250 deductible$415.25 $500 deductible$275.75 Comprehensive$50 deductible$110.25 $100 deductible$100.00 a.$43.23b.$46.10c.$54.85d.$64.44

Which of the following statements is not something you should be thinking when considering changes in your auto insurance policy?a.Higher deductibles mean lower premiums but more out-of-pocket expense in the event of an accident.b.The premium you pay guarantees that you will never have to pay more than your deductible in the event of an accident.c.The more types of insurance you include in your policy, the more protected you are from financial loss in the event of an accident.d.Lower coverage limits mean lower premiums but more restrictions on the insurance company when covering injuries and damage resulting from an accident.