Car Insurance Trivia - Genus II

Welcome to the second edition of Car Insurance Trivia. Just like last time, we will ask car insurance-related questions, but this time, instead of spelling out scenarios, we have simplified things a bit and made the questions multiple choice. So round up your friends, get the popcorn poppin’, pour the soda, and settle in for a good time, as we get ready to play Car Insurance Trivia - Genus II.

Medical Payments Coverage

Medical payments coverage pays for reasonable expenses incurred for necessary medical and funeral services. This coverage applies to you (the “insured”), all others covered in the general insurance agreement, as well as any passengers at the time. The question is: How long does medical payments coverage extend?

A) 90 days - you must bill your car insurance company for all expenses within 90 days
B) One year - all services must be performed within one year or you have to take the insurer to court
C) Three years - all services must be performed within this period or they are not covered by the insurer
D) Unlimited - there is no “statute of limitations” on medical payments coverage

The answer: Three years (C). The reason that insurers limit payments to only services rendered within three years is that with a lapse of time greater than that, it might become difficult to determine whether the expenses were truly as a result of the accident. Also, by limiting damages to three years, insurance companies are better able to predict their expenses, which results in lower car insurance rates for everyone.

Chico’s Bail Bonds

If you’re required to post bail as result of an accident, how much is your insurance company required to pay toward your bail bond?

A) Nothing - you’re on your own!
B) $250 - this is a standard aspect of all car insurance agreements
C) It depends on your insurance agreement, but the typical amount is up to $500
D) $10,000 or more, depending on your agreement

The answer: $250 (B). This is part of the standard insurance contract.

If it Doesn’t Fit, You Must Acquit

If you’re asked by your insurance company to attend a trial, how much must the insurance company pay you to compensate for lost wages?

A) Nothing - you must attend, as stipulated in the standard language of every car insurance contract
B) Up to $200 per day, depending on your actual wages
C) $200 per day, regardless of your actual wages
D) Unlimited - the insurance company must pay your actual wages no matter how high

The answer: Up to $200 per day, depending on your actual wages (B). The insurer must pay you because your participation in the trial is only necessary upon the insurance company’s request. Normally, the insurer simply pays for your defense, and you don’t even need to show up.

We hope you enjoyed this edition of Car Insurance Trivia. We may not have million dollar prizes like Deal or No Deal, but by mastering your knowledge of car insurance, you do stand to win one very valuable prize: Savings on your car insurance rates. Knowledge is power, so good luck with your savings!