Question

cash course | grades 6+
navigating auto insurance | worksheet

matching
match the definition in column a with the term in column b.
column a column b
______ out-of-pocket cost before insurance pays. a. premium
______ pays others injury or property damage costs. b. auto insurance
______ insurance for non-collision vehicle damage c. comprehensive coverage
______ protection against financial loss from incidents. d. liability coverage
______ regular payment for insurance coverage. e. deductible
______ insurance for damage from car collisions. f. collision coverage

multiple choice

1. what does liability coverage in an auto insurance policy provide?

a. coverage for the theft of your vehicle
b. coverage for your medical expenses, regardless of who is at fault
c. financial protection for damages you cause to another person’s car or property
d. reimbursement for damages to your car in a collision

1. which of the following is not covered under collision coverage?

a. damages to your car from hitting a pothole
b. damages to your car from a collision with another vehicle
c. mechanical failure or normal wear and tear of your car
d. damage to your car from rolling over

1. why might your auto insurance premium increase even if you haven’t filed a claim?

a. because the color has faded over time.
b. natural disasters and increased crime rates lead to more claims in your area.
c. you decided to switch your insurance provider.
d. because the price of gas has increased.

1. which factor does not generally affect your auto insurance premium?

a. the deductible you select
b. the type of coverage you choose
c. your driving record
d. the color of your car

Explanation:

Matching

1. Out - of - pocket cost before insurance pays: This is the definition of deductible. So match with e. Deductible.
2. Pays others' injury or property damage costs: This is liability coverage. Match with d. Liability Coverage.
3. Insurance for non - collision vehicle damage: This is comprehensive coverage. Match with c. Comprehensive Coverage.
4. Protection against financial loss from incidents: This is auto insurance in general. Match with b. Auto Insurance.
5. Regular payment for insurance coverage: This is premium. Match with a. Premium.
6. Insurance for damage from car collisions: This is collision coverage. Match with f. Collision Coverage.

Multiple Choice

1. Question 1

Liability coverage in auto insurance is about covering the damages you cause to others (their car or property). Option a is for theft (not liability), option b is for medical expenses regardless of fault (usually personal injury protection or medical payments), option d is collision coverage for your own car. So the correct answer is c.

Collision coverage is for damage from collisions (with other vehicles, potholes, rolling over). Mechanical failure or normal wear and tear is not a collision - related damage and is not covered by collision coverage. So the correct answer is c.

Auto insurance premiums can increase due to factors like more claims in the area (from natural disasters or crime). Faded color (a) doesn't affect, switching provider (c) doesn't directly increase premium, and gas price (d) is unrelated. So the correct answer is b.

Answer:

c. Financial protection for damages you cause to another person’s car or property

1. Question 2