Motor Vehicle Division Insurance Requirements 2

Question 1

What does collision coverage pay for?

Accepted Answer

Damage to your own vehicle resulting from a collision with another vehicle or object

Answer

Medical expenses for passengers injured in an accident

Answer

Damage to another person's vehicle when you cause an accident

Answer

Liability claims made against you after an accident

Question 2

Which type of coverage protects your vehicle from non-collision events such as theft, weather damage, or fire?

Accepted Answer

Comprehensive coverage

Answer

Liability coverage

Answer

Collision coverage

Answer

Medical payments coverage

Question 3

What is a deductible in an auto insurance policy?

Accepted Answer

The amount you must pay out of pocket before insurance covers the rest

Answer

The monthly premium you pay for insurance coverage

Answer

The maximum amount the insurer will pay per claim

Answer

A discount applied to your premium for good driving history

Question 4

What does underinsured motorist (UIM) coverage provide?

Accepted Answer

Protection when you are hit by a driver whose insurance is insufficient to cover your damages

Answer

Coverage for drivers who have let their license expire

Answer

Additional coverage when you drive an unregistered vehicle

Answer

Coverage for damage caused exclusively by hit-and-run drivers

Question 5

What is Personal Injury Protection (PIP) coverage?

Accepted Answer

Insurance that covers medical expenses and lost wages for you regardless of fault

Answer

Coverage that pays for damage to your vehicle in a crash

Answer

A type of liability coverage for injuries you cause to others

Answer

Coverage specifically designed for motorcycle riders

Question 6

In which situations must a driver typically show proof of insurance?

Accepted Answer

When requested by law enforcement, at registration renewal, and after an accident

Answer

Only when renewing vehicle registration

Answer

Only if involved in an accident causing bodily injury

Answer

Only when crossing state lines into another jurisdiction

Question 7

What typically happens to your vehicle registration if your auto insurance policy lapses?

Accepted Answer

The MVD is notified and your registration may be suspended until insurance is reinstated

Answer

Nothing — registration and insurance are handled completely separately

Answer

Your registration is automatically renewed without requiring proof of insurance

Answer

You receive a grace period of 12 months before any action is taken