Automobile Insurance

What is the purpose of insurance?

• To increase financial risk

• To transfer financial responsibility for a loss

• To avoid paying premiums

• To eliminate all risks

What is a premium in the context of insurance?

• A penalty for causing an accident

• A fee paid to an insurance company

• A reward for safe driving

• A tax on vehicle ownership

What does the insurance company do when you pay a premium?

• Assumes the risk and pays for losses

• Increases your liability

• Reduces your coverage

• Charges additional fees

Up to what amount does the insurance company pay?

• Unlimited amount

• Up to the limit of the policy

• Twice the premium amount

• A fixed amount of $10,000

What are the three main types of coverage mentioned?

• LIABILITY, COLLISION, COMPREHENSIVE

• LIABILITY, DAMAGE, MEDICAL

• COLLISION, DAMAGE, RISK

• COMPREHENSIVE, MEDICAL, RISK

What does liability insurance cover according to N.C. Law?

• Only property damage

• Only personal injury

• Injury and property damage

• Medical payments only

What is the minimum liability coverage for bodily injury or death of one person as per NC Laws?

• $10,000

• $30,000

• $50,000

• $60,000

What is the minimum liability coverage for bodily injury or death of two or more persons per occurrence?

• $30,000

• $50,000

• $60,000

• $70,000

What is the minimum liability coverage for damage caused by you to another’s property or vehicle?

• $10,000

• $20,000

• $25,000

• $30,000

What is the total maximum liability coverage if you have a 30-60-25 policy?

• $75,000

• $85,000

• $95,000

• $100,000