VADETS Module 10 Test - Questions and Answers

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VADETS Module 10 Test - Questions and Answers Many insurance companies offer a discount if the vehicle is equipped with an airbag. True It is always a good idea to call the police if you are involved in a crash. True Most insurance companies will lower your premiums if you have had a good driving record. True The type of insurance which pays for the replacement or repair of YOUR vehicle following a crash in which you are at fault is _____. collision insurance If you fail to pay your automobile insurance premium on time, the insurance company _____. must give you 10 days notice and then may cancel your policy Insurance that pays others for the costs of a crash that you caused is called _____. liability insurance Assigned risk drivers pay lower premiums for insurance than other drivers. False It is unlawful for an insurance company to raise your premiums if you are involved in a collision that was not your fault. True A $100 deductible means _____. you must pay the first 100 towards repairs to your vehicle A vehicle that catches on fire is covered by _____. comprehensive insurance Which of the following affects your insurance rates? age of driver, driving record, and type of vehicle Statistically, young drivers have more crashes than older, more experienced drivers and therefore their insurance premiums are higher. True You become an assigned risk driver when _____. no insurance company will voluntarily insure you The financial responsibility law can be satisfied with _____. liability insurance Which of the following may reduce your insurance premium? good grades and if you drive less than 7500 miles per year When involved in a crash, you should to get names, addresses, registration numbers and insurance information from everyone involved in the collision. True How much is the uninsured motorist fee? 500 Collision insurance may be required if you are financing the vehicle. True If your vehicle is stolen, comprehensive insurance will pay for you to replace it with a comparable vehicle. True The Monroney Sticker Price shows the base price, manufacturer's installed options, transportation charges and fuel economy. True When buying a new vehicle, you will probably get more money for your old vehicle if you trade it in rather than selling it yourself. False It is best to discuss a trade-in after you negotiate the best possible price for the vehicle you are purchasing. True A fresh coat of paint on a used vehicle indicates that the vehicle is in good condition. False Buying a used car involves more risks than buying a new car. True Green fluid coming from under the vehicle is most likely an oil leak. False The base price of a new car is the cost of the car without options. True

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