| Auto Insurance
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You’ve been driving for a while, and you’re confident you know the ins and outs of auto insurance. But are you really sure about that? Put your car insurance knowledge to the test with this quiz and see if you can get a perfect score!

Think You Know Auto Insurance? Take Our Quiz to Find Out!

True or False: Every state has the same minimum insurance requirements.

1. True
2. False

The Answer is False!

Not only do states set their own limits for liability coverage, certain places like Florida require additional coverages like Personal Injury Protection. Learn about your state’s auto insurance laws here.

Most states require drivers to carry a minimum amount of bodily injury and property damage liability insurance. Bodily Injury Liability typically pays for which of the following in an accident where you are at-fault?

1. Your injuries
2. The other driver's injuries
3. Injuries to passengers in the other vehicle
4. Both #2 and #3

The Answer is #4!

Bodily Injury Liability helps pay for other people’s medical bills when you cause an accident and your legal defense if you’re sued. It doesn’t cover your own injuries or medical expenses for passengers in your vehicle.

Most states require drivers to carry a minimum amount of bodily injury and property damage liability insurance. Property Damage Liability typically pays for which of the following in an accident where you are at-fault?

1. Damage to your vehicle
2. Damage to another person's vehicle and property
3. Your legal defense if you get sued
4. Both #2 and #3

The Answer is #4!

Property Damage Liability typically pays for damages to another person’s property (typically their car) in an accident you cause. However, it can also provide financial protection if you get sued. Remember, it doesn’t cover your own car or property.

If you accidentally knock over your neighbor’s fence with your car, what type of insurance coverage would pay for damage to the fence?

1. Comprehensive
2. Collision
3. Property Damage Liability
4. Gap Insurance

The Answer is #3!

Not only does Property Damage Liability pay for damages to another car in an accident you cause, but it also offers you protection should you hit a mailbox, fence, building, or guardrail. Remember, it doesn’t cover your own car or property.

Which of the following is NOT a factor that might be used to determine your auto insurance rate?

1. Year, make, and model of your car
2. Where you live and drive
3. The amount (and types) of coverage you choose
4. Your vehicle’s color

The Answer is #4!

Contrary to widespread rumors, your vehicle’s color plays no role in how much your car insurance costs. There are a number of factors that are considered, but color isn’t one of them.

True or False: Car insurance typically follows the driver, not the car.

1. True
2. False

The Answer is False!

Generally speaking, a car insurance policy is more likely to cover a certain vehicle, not a specific driver.

Comprehensive Coverage and Collision Coverage cover which of the following?

1. Damage to your vehicle
2. A person's medical bills
3. Damage to another person's vehicle
4. None of the above

The Answer is #1!

If you cause an accident, collision coverage will help cover damages to your vehicle. Comprehensive coverage is sometimes referred to as “other than collision coverage,” and it will protect you financially if your car is damaged in a break-in, strikes an animal, or is damaged during a natural disaster.

True or False: You can be required to purchase collision and comprehensive coverage.

1. True
2. False

The Answer is True!

While it might not be required by law, if you take out a loan to buy your car, the institution you borrow from might require you to carry collision and comprehensive coverage. If you fail to maintain coverage that protects your vehicle, your lienholder can “force place” coverage and add that cost to your car payment. Often, force-placed coverage is more expensive than comprehensive and collision coverage under your auto policy.

Comprehensive Coverage and Collision Coverage often include a deductible. What is a deductible?

1. Your monthly car insurance payment
2. A specialized type of coverage for SUVs and trucks
3. The out-of-pocket amount you pay up front for damages after filing a claim
4. None of the above

The Answer is #3!

If you end up in an accident, you are responsible for meeting your deductible before insurance will pay for the rest of the damages to your car.

Which of the following does Direct Auto Insurance offer?

1. Low rates
2. Flexible payment plans
3. Great services
4. Discounts
5. All of the above

The Answer is #5!

Direct Auto Insurance offers all of the great options above, regardless of your driving history*!

True or False: To activate your auto insurance policy, insurance companies require either payment of your premiums in full or a down payment if you choose to pay in installments.

1. True
2. False

The Answer is True!

If you choose to pay for your car insurance policy in monthly installments, you will be required to make some form of a down payment to activate your policy. A down payment allows you to pay less to get your policy started if you can’t afford the entire premium upfront.

What is an SR-22?

1. Special insurance options for residents of certain states
2. Forms that every driver has to fill out to get insurance
3. A certificate of financial responsibility filed with a state’s department of motor vehicles (or similar authority) by an insurance company on behalf of an insured individual
4. None of the above

The Answer is #3!

 If you have been convicted of a DUI, have had your license suspended, or committed multiple moving violations, you might have to keep an SR-22 on file to prove you’re meeting minimum coverage requirements. Some states have similar but slightly different forms, like the FR-44.

Which of the following are true about Uninsured Motorist Coverage?

1. It protects you if an uninsured driver hits your vehicle
2. Some states require it in addition to liability coverage
3. It protects you if someone hits your car and flees the scene
4. All of the above

The Answer is #4!

Uninsured Motorist Coverage is a type of coverage purchased in addition to liability coverage. In some states, it is required. In some states, insurance companies are just required to offer it to you. It protects you financially if someone else causes an accident and doesn’t have insurance or their insurance is insufficient to cover the expenses. It also will protect you if you’re ever the victim of a hit and run.

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Think You Know Auto Insurance? Take Our Quiz to Find Out!

How’d you do? If you didn’t get a perfect score and still have some questions about auto insurance, don’t worry. Just give us call, visit our website, or stop by one of our convenient locations; we’ll help you out! In the meantime, check out these helpful resources to learn more about auto insurance!

*Policies, payment plans, and discounts are subject to terms and conditions and may not be available in all states. Rates and Savings, if any, will vary. Costs may vary based on how you buy.

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