Below is a few Automobile Insurance Quiz Question one can use for your classes or audience.
WHAT IS AUTOMOBILE INSURANCE?
Automobile insurance is an insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise there from.
WHAT IS AUTO INSURANCE FRAUD?
Auto insurance fraud occurs when people knowingly misrepresent pertinent facts to a company or agent to obtain a policy or collect money to which they aren’t entitled.
WHO SELLS INSURANCE?
Insurance brokers: brokers offer the products of insurance companies with which they have agreements.
Insurance agents: agents work for a specific insurance company.
WHAT ARE SOFT FRAUD?
Soft fraud is a type of fraud that occurs when normally honest people knowingly misrepresent facts on insurance applications or “pad” a claim with damages and injuries that never occurred. Some examples:
Understating the annual number of miles driven on an insurance application to reduce insurance premiums.
Reporting to one’s agent or company that a car is principally garaged in New Jersey when it is garaged elsewhere.
Adding damages to a claim to cover the cost of your deductible or prior premiums paid.
Omitting high-risk drivers from one’s application or policy.
IS AUTOMOBILE INSURANCE MANDATORY?
Drivers must purchase and maintain car insurance in order to legally drive around and across the states and country. The example in Pennsylvania, Under Pennsylvania law, this is called maintaining “financial responsibility” on members’ vehicles. A lapse in insurance coverage may result in the suspension of member’s vehicle registration privilege for three months, unless the lapse of insurance was for a period of fewer than 31 days and the owner or registrant proves to the Department of Transportation (DOT) that the vehicle was not operated during this short lapse in coverage.
WHAT IS HARD FRAUD?
Hard fraud occurs when an accident, injury, theft or other loss is deliberately staged, either by a lone person or as part of an organized fraud ring. These rings often join dishonest doctors, lawyers and repair shop owners in snaring innocent drivers with a staged collision that appears accidental.
If you (or a member of your household) have a driving record that includes motor vehicle violations, suspensions and/or at-fault accidents, the price you pay to obtain insurance might be higher. Insurance companies may consider you (or a member of your household) to be a high-risk driver and charge a higher rate than a driver with a “clean” record (free of accidents and violations). Each company has underwriting guidelines to determine what type and how many accidents and violations during a specific period constitute a high-risk driver. (Remember: Insurers assign insurance eligibility points for accidents and violations, and having seven or more may make it difficult to remain in the voluntary market.)
The make, model, and value of your vehicle affects the cost of your auto insurance premium. Generally, an older vehicle will cost less to insure, while a high performance or luxury car will cost more. The cost to insure different makes and models of vehicles can vary among insurers, so be sure to check with several insurers to get the best price and coverage for your needs. Companies may offer discounts for vehicles with safety features, so check with your insurer or producer for details, especially when you are considering purchasing a vehicle.
Where you drive and keep your vehicle also influences your premium. The number of claims filed by policyholders in your territory will affect the rates charged by insurance companies.
Gender and Age
Statistics show that males and young adults have a higher incidence of accidents and claims; therefore, your gender and age can affect your rate.
Statistically, young married couples tend to have a lower incidence of accidents and claims; therefore, they generally pay lower premiums than single people.
The distance you live from work or school may affect the cost of your insurance, as it determines your daily exposure to risk. Insurers will calculate your premium based on the average distance you drive on an annual basis or how far you commute to work or school. Whether you use your vehicle for personal or business use may also impact your rate.