H&R Block Budget Challenge Quiz Week 4 - Unexpected Events 100% Correct

H&R Block Budget Challenge Quiz Week 4 - Unexpected Events 100% Correct What happens if you don't pay your insurance premium for your car? You are not insured and are driving illegally. Suppose that you only have liability and comprehensive car insurance and you allow your roommate (who doesn't have car insurance) to drive your car to run an errand. What will likely happen if there is a single-car accident causing moderate damage to your car while your roommate is driving? Your insurance policy will likely not cover the damages to your car. John, Alyson and Jared all selected identical new cars at the same price. John bought the car with some of his own money and the rest a car loan. Alyson bought the car with cash. Jared leased the car. What is true about their options for car insurance? Alyson has the option to choose the less expensive liability-only insurance coverage William pays his $500 premium every 6 months for automobile insurance with collision coverage. His deductible is $750. William caused a minor accident that resulted in $700 of damages to his car and $1,100 of damages to the other car. William's car looks and drives fine and he chooses not to file a claim to repair his car. How much will William pay out-of-pocket to have the other car fixed? $0 - Your liability will cover the other car and you would not have to pay the deductible because you aren't fixing your car. You will still get a point on your record if the other driver files a claim to fix their car which will make your insurance go up. How can understanding the risk management topics help in everyday life? It can help you evaluate the risks involved with situations you might face while driving, hanging out with friends, or being adventurous. AND It can help safeguard your credit and protect you from lawsuits. AND It can help you avoid large medical bills incurred because you have no medical insurance. When Lisa purchased her house, the mortgage lender required her homeowner's insurance to cover 100% of the loan amount. After many years, Lisa paid off her mortgage. If Lisa decided to comparison shop for homeowner's insurance now, what should the insurance coverage amount be based on...? The cost to rebuild her home now.