Test your knowledge with 10 simple questions! close

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1. Which of the following DOES NOT affect auto insurance premiums?

A. Vehicle make and model, i.e., SUV vs. convertible
B. "Theft-ability:" Whether the vehicle (model) is more often stolen than others
C. Installed safety equipment
D. Fuel efficiency

2. Which of the following could cause your premiums to increase?

A. Moving to a larger, more expensive city
B. Taking defensive driving course, as this may suggest you are not a seasoned driver
C. Both of the above

3. TRUE or FALSE: Your school grades may influence your auto premiums.

A. True
B. False

4. You're thinking of buying a new house and learn the one you like best has had three plumbing leaks in the past five years. Before signing a purchase contract you should...

A. Not worry about it because the current owner only filed one small claim.
B. Give the address of the house to your insurance agent and ask for a price quote.
C. Not worry about it because you have a different insurance company than the current owner.
D. Have a licensed plumber make a full inspection and report on any potential problems.

5. Is it true that although I don't live anywhere near a river or ocean, I must buy flood insurance for my new home?

A. No, because you're regular homeowners insurance will protect you against flooding.
B. Yes, because you could have a flood in your house caused by a plumbing leak or overflowing washing machine.
C. No, as long as the first floor of your house is at least 3 inches higher than your front walk.
D. Yes, if you have a mortgage on your house and it's in a designated flood hazard area.

6. Neighbourhood kid fell out of a tree he was climbing on my property and broke his arm. Will my homeowners insurance pay his medical bills?

A. Yes, as long as you had No Climbing Trees signs posted prominently on your property.
B. No, if he was climbing without your permission it's his parents' fault.
C. Yes, most homeowner's policies have provisions to cover liabilities like this.
D. No, becasue your insurance company may claim having trees on your property constitutes "an attractive nuisance," and you should have cut them down long ago.

7. TRUE or FALSE: Using your vehicle for weekly recreation and not for a daily commute may lower your auto premiums.

A. True
B. False

8. My antique car was hit from behind by another driver who is fully covered by insurance. His company is willing to pay to have my car repaired, but don't they owe we me something for the big loss in value now that my never-before-hit classic has been wrecked?

A. Sorry, Charlie. No auto insurance policy covers intrinsic loss like that.
B. You bet. Every state requires all policies to cover diminished value claims.
C. Yes, but only if you have a rider in your policy that covers it.
D. You have a valid claim, but collecting on it may be tough.

9. What is the major difference between term life and whole life insurance?

A. Term is insurance you have for a short period of time and whole life means you have to pay for it for your entire life.
B. Term is only for people with a terminal disease.
C. A whole life policy is a combination of insurance and investment while a term policy is insurance only.
D. Whole life is cheaper because you pay it off over a longer period of time.

10. I had a heart attack several years ago. I'm fully recovered and considering a job change. Will I be able to get health insurance through my new employer?

A. No way Jose, stick with your current job.
B. Yes, thanks to the Health Insurance Portability and Accountability Act.
C. Yes, as long as you pass a thorough medical exam.
D. Yes, but you will no longer be covered for the pre-existing condition.

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