Quiz/survey quiz week 4 - unexpected events a
1. what happens if you don't pay your car insurance premium for your vehicle? your car payments will increase
you are not insured
you are driving illegally
any insurance claim isn't processed and your car doesn't get fixed
your are not insured and are driving illegally

2. suppose that you only have liability and comprehensive car insurance and you allow your roommate (who doesn't have car insurance) to drive your car to run an errand. what will likely happen if there is a single-car accident causing moderate damage to your car while your roommate is driving?
your insurance policy will likely not cover the damages to your car.
your friend will likely go to jail for theft of your car and destruction of property. your friend will likely receive fines for driving without insurance.
your insurance will likely pay for the damages and add your friend's accident to your record.

3. john, alyson and jared all selected identical new cars at the same price. john bought the car with some of his own money and the rest a car loan. alyson bought the car with cash. jared leased the car. what is true about their options for car insurance?
alyson has the option to choose the less expensive liability-only insurance coverage.
john and alyson have the option to choose the less expensive liability-only insurance coverage.
alyson and jared have the option to choose the less expensive liability-only insurance coverage.
john, alyson and jared all have the option to choose the less expensive liability-only insurance coverage.

4. william pays his $500 premium every 6 months for automobile insurance with collision coverage. his deductible is $750. william caused a minor accident that resulted in $700 of damages to his car and $1,100 of damages to the other car. william's car looks and drives fine and he chooses not to file a claim to repair his car. how much will william pay out-of-pocket to have the other car fixed?
$1,550
$750
$0
$1,100
$500
$800

5. when lisa purchased her house, the mortgage lender required her homeowner's insurance to cover 100% of the loan amount. after many years, lisa paid off her mortgage. if lisa decided to comparison shop for homeowner's insurance now, what should the insurance coverage amount be based on…
the market value of the house
the original cost to build the house
the cost to rebuild the house
the appraised value of the house

6. how can understanding risk management topics in everyday life?
it can you evaluate the risks involved with situations you might face while driving, hanging out with friends, or being adventurous.
it can you avoid large medical bills incurred because you have no medical insurance.
it can safeguard your credit and protect you from lawsuits.
all answers are correct