Car Insurance and Total Loss Quiz

Benjamin is considering different types of car insurance. He wants to know which type would cover damage from causes other than a collision, such as fire or vandalism. What does comprehensive insurance cover?

• Only the salvage value of the car

• Only the stated/agreed value of the car

• Damage from causes other than a collision, such as fire or vandalism

• Damage from collisions with other vehicles

Answer explanation

Comprehensive insurance covers damage from causes other than a collision, such as fire or vandalism. This makes it the correct choice for Benjamin's needs.

Emma's car was severely damaged in an accident in New York. Her insurance company is determining whether the car should be declared a total loss. What is the 'total loss threshold' percentage in New York that the insurance company will use to make this decision?

• 50%

• 60%

• 75%

• 90%

Answer explanation

In New York, the total loss threshold for determining if a car is a total loss is 75%. This means if the repair costs exceed 75% of the car's value, the insurance company will declare it a total loss.

Elijah was in a car accident, and his insurance company is deciding whether his car is 'totaled.' When is a car considered 'totaled'?

• When the cost to repair it is more than the car’s actual value.

• When it has been in more than three accidents.

• When it has a high salvage value.

• When it is more than 10 years old.

Answer explanation

A car is considered 'totaled' when the cost to repair it exceeds its actual value. This means it is not economically viable to fix the car, making the first answer choice the correct one.

Michael was driving to work when his car skidded on an oil spill, leading to a collision. In the context of this accident, what is the actual cause of the accident?

• The primary cause of an injury or damage.

• The value of an insured item as stated by the policyholder.

• The event that sets off a chain of events leading to the loss.

• The estimated resale value of an asset.

Answer explanation

The correct choice is 'The event that sets off a chain of events leading to the loss.' In this case, the oil spill caused Michael's car to skid, initiating the accident.

Benjamin was recently in an accident, and his car was declared totaled. He owns the car outright without any loan. What should Benjamin do next?

• Continue driving the car.

• File a claim and use the money to purchase another car.

• Ignore the insurance payout.

• Sell the car for parts.

Answer explanation

Since Benjamin's car is totaled and he owns it outright, he should file a claim with his insurance. This will allow him to receive a payout, which he can then use to purchase another car.

Evelyn recently filed an insurance claim after a minor car accident. When the insurance adjuster provided an assessment of the damages, Evelyn felt the amount was too low. What should Evelyn do if she disagrees with the insurance adjuster’s assessment?

• Immediately hire a private attorney.

• Talk to the consumer services personnel at your state insurance department.

• Ignore the assessment and do nothing.

• Accept the assessment without question.

Answer explanation

Evelyn should talk to the consumer services personnel at her state insurance department. They can provide guidance on disputing the assessment and help her understand her rights regarding the claim.

Grace was driving her car when she got into an accident with another vehicle. What type of insurance would cover the damage to her car in this situation?

• Liability insurance

• Collision insurance

• Salvage insurance

• Comprehensive insurance

Answer explanation

Collision insurance covers damage to Grace's car resulting from an accident with another vehicle. Liability insurance covers damages to others, while comprehensive insurance covers non-collision incidents, and salvage insurance is for totaled vehicles.

Grace is designing a science experiment and needs to determine which materials will best insulate ice to prevent it from melting. She must plan her approach, use evidence from previous experiments, and explain her reasoning. What is the primary focus of DoK Level 3 questions in this context?

• Reasoning, planning, and using evidence.

• Complex problem-solving.

• Engagement in more than just recall.

• Recall of information or the use of simple procedures.

Answer explanation

The primary focus of DoK Level 3 questions involves reasoning, planning, and using evidence, as Grace must analyze past experiments and justify her choices for insulating materials.

Sophia was injured in a car accident and wants to hold the other driver accountable for her personal injury. What must be proven in court for Sophia to succeed?

• The defendant had a legal duty, failed to fulfill it, and caused injury.

• The defendant had a high salvage value.

• The defendant's car had been in more than three accidents.

• The defendant's car was more than 10 years old.

Answer explanation

To hold the other driver accountable, Sophia must prove that the defendant had a legal duty to drive safely, failed to fulfill that duty, and that this failure directly caused her injury.

Emma owns a delivery van for her business. She plans to sell the van after using it for several years. What does the term 'salvage value' refer to in this context?

• The value of an insured item as stated by the policyholder.

• The amount paid by the insurer in case of a total loss.

• The estimated resale value of an asset at the end of its useful life.

• The cost to repair a car after an accident.

Answer explanation

In this context, 'salvage value' refers to the estimated resale value of Emma's delivery van at the end of its useful life, which is the correct choice among the options provided.