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Financial Literacy Final Exam Review Flashcards | StudBud
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Financial Literacy Final Exam Review
Financial Literacy Final Exam Review
18 terms
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StudBud Administration
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18 plays
Insurance Unit
Flashcards
18 cards
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Practice quiz
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Questions
18
Answers
1
True or False: Comprehensive insurance covers engine failure due to poor maintenance.
False
True
2
Liability insurance
is designed to cover:
Repairs to your car from a crash
Your personal injuries
Damage and injuries you cause to others in an accident
Damage caused by natural disasters
3
True or False: A higher deductible usually results in a lower premium.
False
True
4
What happens if you let your car insurance policy lapse?
Your coverage is still active
You may face fines or lose your license
Nothing happens
Your premiums go down
5
True or False: You only need liability insurance if your car is older than 10 years.
True
False
6
Which of the following helps lower your insurance premium?
Driving a sports car
Adding extra coverage
Having a high credit score
Filing many small claims
7
Who typically pays the
highest
insurance premiums?
Older adults with safe driving records
College graduates
Young, inexperienced drivers
People with multiple savings accounts
8
What type of insurance protects
your income
if you become unable to work due to illness or injury?
Auto insurance
Health insurance
Disability insurance
Life insurance
9
What is a
premium
in terms of insurance?
The monthly or annual amount you pay for insurance coverage
A bonus for safe driving
The fee charged by your bank
The amount you receive in a claim
10
Which factor does
not
typically affect the cost of your auto insurance premium?
Your credit score
Your driving record
Your age
Your favorite car brand
11
What is a
deductible
in an insurance policy?
The amount you must pay before insurance starts covering costs
The amount the insurance pays you directly
A discount offered by your employer
The total cost of your insurance
12
True or False: Insurance companies may charge more if you live in a high-crime area.
False
True
13
What is the purpose of insurance?
To guarantee profit
To avoid taxes
To invest money
To protect against financial loss
14
What’s the connection between a clean driving record and insurance cost?
It has no effect on your rates
It guarantees free insurance
It increases your deductible
It usually lowers your insurance premium
15
Which type of auto insurance would cover damage to
your car
if you are at fault in an accident?
Liability insurance
Rental insurance
Comprehensive insurance
Collision insurance
16
If your deductible is $500 and your repair costs are $1,500, how much will your insurance likely pay?
$1,000
$1,500
$500
$2,000
17
Which of the following is
not
typically covered by standard liability car insurance?
Damage to someone else's car
Your own medical bills
Legal fees if you're sued
Injuries you cause to others
18
Comprehensive insurance
covers:
Medical expenses only
Non-collision damage like theft or natural disasters.
Only damages from a car accident
Only injuries to other people
