6
QuizMultiple Choice

Auto Insurance

Question 6 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

What is no-fault insurance?

Answer
A
No-fault insurance provides full coverage for the entire car.
B
No-fault insurance covers only damages that you did not cause.
C
No-fault insurance is the default insurance that all drivers receive if they do not wish to purchase a special policy.
D
No-fault insurance covers medical expenses incurred after an accident, regardless of which driver caused the crash.

Explanation

No-fault insurance pays for certain medical expenses after an accident without first determining which driver caused the crash. It does not mean that all damage to the car is fully covered or that only damage you did not cause is covered. The best answer is “No-fault insurance covers medical expenses incurred after an accident, regardless of which driver caused the crash.”

AI-written and checked against the verified answer.

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