Car Insurance Trivia

How savvy are you about car insurance? Take our car insurance trivia test and find out. The answers could help you make better decisions when you shop for car insurance quotes online.

Car insurance is required in all 50 states for anyone operating a motor vehicle on public roads.

All 50 states and the District of Columbia require that drivers carry a minimum amount of car insurance to cover stipulated amounts of property damage and personal injury. Some states will allow you to post a bond
in lieu of buying an insurance policy.

If you have liability insurance, it covers anyone else who drives your car.

Your insurance will most likely cover any damages, but always read your policy for any exclusions and limitations.

If you hit a deer (and over 1.5 million U.S. drivers do every year), your liability insurance will cover the damage to your car.

A basic policy will cover any injuries you sustain in the accident, but unless you have comprehensive coverage, it may not cover damages to the car.

Car insurance is tax deductible.

If you use your car for business (that doesn’t include time spent commuting to the office), you may be able to deduct the percentage of business use on your taxes. Always consult a tax expert to be sure.

If you and another driver are in an accident and your insurance companies can’t agree who was at
fault, neither company will pay for the claims.

Both insurance companies will prepare cases and submit them to an impartial arbitration panel who will determine the percentage of liability for each driver.

If someone breaks into your car and steals your expensive camera equipment, your liability policy
will cover the loss.

Your basic policy will pay for damage to your vehicle, but it probably won’t pay to replace stolen property unless you  have purchased supplemental coverage. Your homeowner’s or renter’s insurance policy may pay for the loss up to a set amount, however.

Car insurance companies will charge you a higher premium if you drive a red car.

Car insurers base premiums on your driving record, annual mileage, credit record and many other factors, but the color of your car isn’t one of them.

A new car is more likely to be stolen.

Not necessarily. Older cars are just as attractive to thieves for a couple of reasons: they’re often easier to boost and they’re in greater demand at the illegal chop shops that dismantle stolen cars and resell the parts.

If your car is totaled, your insurance will pay off whatever you still owe on the loan or lease.

Your car insurance company will only reimburse you for the actual cash value of your car less your deductible. Depreciation will likely mean you’ll receive far less than you need to replace the vehicle. You can cover the difference by purchasing gap insurance.

Your car insurance will pay for a rental car while your damaged vehicle is being repaired.

Maybe. Maybe not. It will depend on your policy. You can purchase supplemental rental reimbursement coverage from most insurers, but be aware that there will be per-day limits and a cap on the total amount of
reimbursement.