Automobile Insurance Discounts and Policy Features Quiz

Driving history has a significant impact on insurance costs, with a clean record often resulting in lower premiums.

A 'no-claims discount' rewards policyholders for a claim-free period by reducing their insurance premium.

Young drivers, especially those under 25, often face higher premiums due to perceived higher risk.

A 'deductible' is the initial amount the policyholder pays before the insurer covers the remaining costs.

The 'multi-policy discount' offers a reduced premium when a policyholder combines various insurance policies with one provider.

Frequent long-distance driving is not usually a factor that leads to discounts; it may increase the risk and, consequently, the premium.

'Comprehensive coverage' safeguards against non-collision damages, including theft, vandalism, and natural disasters.

'Gap insurance' bridges the gap between the vehicle's value and the outstanding loan amount in case of total loss.

'Towing and labor coverage' offers reimbursement for costs associated with towing and roadside assistance services.

'Rental reimbursement coverage' compensates for rental car expenses during repairs following a covered claim.

'Uninsured/underinsured motorist coverage' protects against injuries when the at-fault driver lacks sufficient insurance.

'Personal injury protection' (PIP) covers injuries to you and your passengers, regardless of fault, providing medical and related expenses.

'Full coverage' encompasses all available policy features and options, providing extensive protection.

'Non-owner car insurance' covers injuries to you and your passengers in an accident, regardless of fault, when driving a car not owned by you.

'Exclusion' refers to a situation where the insurance company denies coverage for specific risks or circumstances.