#1
What does collision coverage typically protect against in automobile insurance?
Damage caused by hitting another vehicle or object
ExplanationCovers damage from collisions.
#2
Which of the following is NOT a factor that can affect automobile insurance premiums?
Color of the car
ExplanationColor does not affect premiums.
#3
In the context of automobile repair processes, what does OEM stand for?
Original Equipment Manufacturer
ExplanationRefers to original parts.
#4
What is the purpose of a deductible in automobile insurance?
To share the risk between the insurer and the insured
ExplanationSplits costs between parties.
#5
What is the purpose of a claims adjuster in the automobile insurance process?
To assess and evaluate claims
ExplanationEvaluates insurance claims.
#6
What is meant by 'total loss' in the context of automobile insurance claims?
The complete destruction of the vehicle
ExplanationVehicle is beyond repair.
#7
What is the purpose of a written estimate in the automobile repair process?
To negotiate with the insurance company
ExplanationUsed for negotiation.
#8
What does the term 'towing coverage' refer to in automobile insurance policies?
Coverage for towing services in case of a breakdown
ExplanationIncludes tow services.
#9
Which of the following is NOT typically covered under comprehensive automobile insurance?
Collision with another vehicle
ExplanationDoesn't cover collisions.
#10
What is the role of aftermarket parts in automobile repair?
They are parts made by companies other than the original manufacturer
ExplanationNon-original replacement parts.
#11
What is a 'salvage title' in the context of automobile insurance?
A title indicating the vehicle was previously declared a total loss
ExplanationTitle for total loss vehicles.
#12
What is meant by 'subrogation' in the context of automobile insurance claims?
The process of recovering losses from a third party
ExplanationRecovering losses from others.
#13
What does 'betterment' refer to in automobile insurance claims?
The policyholder's contribution towards replacing old parts with new ones
ExplanationUpgrade cost responsibility.
#14
What is meant by 'diminished value' in the context of automobile insurance claims?
The reduction in the vehicle's market value after an accident
ExplanationDecrease in resale value.