New Driver Assessment

1. Sam finances a new car and buys only his state's minimum liability coverage. What will his lender generally also require?
- A) Nothing more, since he meets the state minimum
- B) Collision and comprehensive coverage
- C) A higher bodily injury limit only
- D) Gap insurance, in every case
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: A lender generally requires collision and comprehensive while you owe money on the car, because those cover damage to the car itself. State minimum liability covers harm you cause to others. Gap insurance is a separate, optional add-on.
Review: Financing a Car: What Insurance Your Lender Requires
1. Ana still owes $18,000 on her car loan. Which coverages protect the car itself, and are what her lender will generally insist on?
- A) Bodily injury and property damage liability
- B) Uninsured motorist coverage
- C) Collision and comprehensive
- D) Personal injury protection
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Collision and comprehensive pay for damage to your own car, which is what a lender wants protected. Liability, uninsured motorist and PIP protect people, not the financed car.
Review: Financing a Car: What Insurance Your Lender Requires
2. A driver with 30/60/25 limits causes a crash that injures one person, whose bills are $45,000. What is the most the bodily injury coverage pays for that person?
- A) $45,000
- B) $60,000
- C) $25,000
- D) $30,000
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: The first number is the cap per injured person, in thousands: $30,000. The $60,000 is the cap for all injuries in one accident, and $25,000 is for property damage. The other $15,000 isn't paid by that coverage.
Review: What Do Auto Liability Limits Like 30/60/25 Mean When Several People Are Hurt?
2. Under 25/50/25 limits, a crash injures two people, each with $40,000 in bills. What is the most the policy pays for their injuries in total?
- A) $50,000
- B) $80,000
- C) $25,000
- D) $75,000
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Each person is capped at $25,000 and all injuries together at $50,000, so the most is $50,000. The last 25 is for property damage, not injuries.
Review: What Do Auto Liability Limits Like 30/60/25 Mean When Several People Are Hurt?
3. Leo sold his car in Virginia today. According to Virginia's DMV, what should he do before cancelling the car's insurance?
- A) Nothing; cancel it the same day
- B) Wait for the buyer to call his insurer
- C) Surrender the license plates and registration
- D) Buy his next car first
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Virginia's DMV says not to cancel insurance until the plates and registration are surrendered, or driving privileges could be suspended. Rules vary by state, so check yours.
Review: Selling Your Car: When to Cancel the Insurance
3. Why can cancelling car insurance right after a sale cause trouble in some states?
- A) The buyer's insurer is billed instead
- B) The state may still show a registered car with no insurance
- C) The policy refund is forfeited
- D) Insurers report the sale to credit bureaus
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Many states tie insurance to the registration, so a registered car with no insurance on record can lead to penalties. That's why some states say to surrender the plates first.
Review: Selling Your Car: When to Cancel the Insurance
4. Maya leaves for college 300 miles away and leaves the family car at home. What might that mean for her parents' policy?
- A) She must be removed from the policy
- B) She may need to stay listed, and the household might qualify for a discount
- C) Their premium will double
- D) Nothing needs to be reported
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Some insurers require students to stay on the policy, and a student away without a car may qualify the household for a discount. Tell the insurer either way.
Review: College Student Away at School: Do They Stay on Your Car Insurance?
4. A student takes the family car to a school in another city. What usually happens to the premium?
- A) It can change, because rates depend on where the car is usually kept
- B) It stays exactly the same
- C) It drops to zero for the school year
- D) The student needs a commercial policy
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Rates are based partly on where a car is usually kept, so moving it can change the premium. If the school is in another state, check that state's liability rules too.
Review: College Student Away at School: Do They Stay on Your Car Insurance?
5. You're hit by a driver whose bodily injury limit is $25,000, and your bills are $60,000. Which of your own coverages is designed for the difference?
- A) Collision
- B) Comprehensive
- C) Rental reimbursement
- D) Uninsured/underinsured motorist coverage
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Uninsured/underinsured motorist coverage pays when the at-fault driver has no insurance or not enough. How it's calculated varies by state.
Review: Hit By An Underinsured Driver
5. The at-fault driver's insurer pays its full $25,000 limit, but your injury costs are higher. Where might the rest come from?
- A) The other driver's collision coverage
- B) Your underinsured motorist coverage, up to your limit
- C) Your comprehensive coverage
- D) Nowhere; the claim is closed
Practice: you’ve seen the answer to both versions of this question, so it won’t change your Insurance IQ.
Explanation: Your underinsured motorist coverage can pay above the other driver's limit, up to your own, depending on your state's rules. Health insurance or PIP may also help with medical bills.
Review: Hit By An Underinsured Driver

Educational only: this assessment measures what the journey teaches. It says nothing about whether your own insurance is adequate, and it isn’t a professional evaluation of your policy.

New Driver: Final Assessment

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