Auto Insurance in California - Test

1. What is mandatory for all drivers in California?
   a) Comprehensive coverage
   b) Liability insurance
   c) Collision coverage
   d) Uninsured motorist coverage

2. As of 2025, what is the minimum liability coverage required for injury or death to one person?
   a) $15,000
   b) $30,000
   c) $60,000
   d) $20,000

3. Prior to 2025, what was the minimum liability coverage for property damage?
   a) $5,000
   b) $10,000
   c) $15,000
   d) $20,000

4. What document must insurance companies provide upon request after violations or suspensions?
   a) Proof of registration
   b) Certificate of Insurance (SR-22/SR-1P)
   c) Driver’s license
   d) Vehicle history report

5. What are potential penalties for driving without insurance?
   a) Fines, license suspension, vehicle impoundment
   b) Only a warning
   c) Mandatory driver education course
   d) No penalties

6. Which optional coverage pays for damage to your vehicle from collisions?
   a) Comprehensive coverage
   b) Uninsured motorist coverage
   c) Collision coverage
   d) Liability coverage

7. Collision coverage covers damage caused by:
   a) Theft
   b) Vandalism
   c) Collisions with objects or vehicles
   d) Natural disasters

8. What does comprehensive coverage generally include?
   a) Damage from collisions only
   b) non-collision damages like theft and vandalism
   c) Only vehicle’s mechanical breakdowns
   d) Liability for injuries to others

9. Which event is typically not covered under comprehensive coverage?
   a) Natural disasters
   b) Theft
   c) Collision with another vehicle
   d) Vandalism

10. Uninsured/Underinsured Motorist coverage protects against:
    a) Roadside emergencies
    b) Accidents with drivers lacking sufficient insurance
    c) Vehicle theft
    d) Mechanical breakdowns

11. Uninsured Motorist (UM) coverage mainly covers:
    a) Damage to your vehicle caused by a collision
    b) Medical expenses and damages caused by uninsured drivers
    c) Only property damage
    d) Rental car expenses only

12. Underinsured Motorist (UIM) coverage is designed to:
    a) Cover your rental car costs
    b) Protect against underinsured drivers by paying the difference
    c) Cover only natural disasters
    d) Cover only theft incidents

Answer: b) Protect against underinsured drivers by paying the difference

13. Personal Injury Protection (PIP) and Medical Payments (MedPay) are coverages that:
    a) Cover damages caused by storms
    b) Cover medical expenses regardless of fault
    c) Cover vehicle repairs only
    d) Cover legal fees after an accident

14. Rental Reimbursement coverage helps pay for:
    a) Car repairs
    b) Rental car costs when your vehicle is unusable
    c) Fuel expenses
    d) Insurance policy premiums

15. Emergency roadside assistance provides services such as:
    a) Car maintenance and inspections
    b) Towing, tire changes, and fuel delivery
    c) Insurance policy discounts
    d) Loaner vehicle rentals

16. Which factor does not influence auto insurance premiums in California?
    a) Driver’s age and driving record
    b) Vehicle type and safety features
    c) The year make model

d) Color of the car

17. which organization enforces auto insurance requirements in California?
a) California Department of Insurance
b) California Highway Patrol
c) California Department of Motor Vehicles (DMV)
d) California State Police

18. What is the typical penalty fee for vehicle impoundment per day without insurance?
a) $100-$200
b) $250-$350
c) $500-$700
d) $50-$100

19. What is a common deductible range for collision coverage?
a) $50-$100
b) $250-$500
c) $1,000-$2,000
d) $5,000+

20. Which of the following is not typically covered under comprehensive coverage?
a) Hailstorm damage
b) Vandalism
c) Collision with another vehicle
d) Fire damage

21. Which statement is true about collision coverage?
a) It covers only damages caused by natural disasters.
b) It usually requires a deductible before coverage applies.
c) It covers damages caused by theft.
d) It is mandatory for all drivers in California.

22. What does insurance company's claim process often involve after an accident?
a) Filing a police report only
b) Directly replacing your vehicle without investigation
c) Investigation to assess damages and coverage
d) Paying the driver out of pocket

23. One reason premiums may be higher in California is:
a) Lower traffic density
b) Higher crime and accident rates in urban areas
c) Uniform rural road conditions
d) Less strict state laws

24. Which statement about rental reimbursement is correct?
a) It covers rental cars for all types of incidents, including mechanical failures.
b) It is usually included automatically in all policies at no extra cost.
c) It helps pay for a rental vehicle during repairs from covered claims, with specified limits.
d) It covers rental expenses only if your vehicle is stolen.

The purpose of understanding policy terms and conditions in your auto insurance policy is to:
a) Avoid paying insurance premiums
b) Know what damages and incidents are covered and how to file claims
c) Reduce your coverage limits intentionally
d) Bypass the claims process entirely