Auto Insurance Policies and Liability Coverage

These flashcards cover essential concepts regarding auto insurance policies, including liability coverage, financial responsibility requirements, and specific terms associated with vehicle insurance.

The personal auto policy covers __ where you cause harm.

liability

The first section of the auto policy is about __.

liability

The second section of the auto policy is about __ to your vehicle.

damage

Financial responsibility means what the state requires drivers and owners of vehicles to have: at least __ per person per accident.

$25,000

In Georgia, the required minimum liability coverage is __.

$25,000

If I cause a serious accident and I have a liability limit of $25,000, that is the most my insurance will pay towards __.

one victim's damages

The highest amount my policy will pay for all injured people is __.

$50,000

If I have $50,000 total liability limits and I knock over two people, each can get __ at most.

$25,000

The minimum liability limits do not cap your __; they cap the insurer's liability.

personal liability

A typical personal auto policy includes __ coverage for injuries sustained by passengers.

medical payments

If the at-fault party has no insurance or less than your liability limits, this is covered under __.

uninsured motorist coverage

The combined single limit in some policies can be as high as __.

$500,000

An important aspect of auto insurance policies is the __ which pays for both the defense costs and damages if the insured is liable.

indemnity

In a collision, the policy will pay for damage to your car, but for other damages, it is called __.

comprehensive

If a person borrows my car with my permission, they are __ under my insurance policy.

covered

Insurance coverage does not include __ acts that are intentional, such as road rage.

intentional

If I am covered by my friend’s insurance while driving their car, that means there are __ policies involved.

two

Your __ includes the vehicle, its use, and the driver when determining insurance eligibility and rates.

coverage grant

A vehicle that is less than __ wheels is not covered under typical auto liability policies.

four

If two parties are involved in an accident and one driver has a minimum limit of $25,000 and the other has $100,000, the higher amount will mean greater protection against a __.

lawsuit

In many states, uninsured motorist coverage is set to default at your __ liability limits unless rejected.

liability

Insurance policies will automatically adjust to meet the higher minimum required by states you __ to.

drive into

Med pay coverage can be available up to limits of __.

$25,000

You are not covered under a policy if you are driving a vehicle __ for hire, like Uber.

used

To be covered, a driver must be using a car that is __ in their policy.

listed

If a driver intentionally causes damage or injury, they are __ under the insurance terms.

not covered

Liability coverage will not respond if an insured is engaged in __ behavior while driving, such as street racing.

reckless

High limits of coverage are necessary if you have __, such as savings or income, to protect against personal liability.

assets

Auto claims resulting from the driver's negligence can lead to an __ against the insurance company to cover costs.

exclusion