Auto insurance IQ

The typical auto insurance policy can send a lexicologist scurrying to decipher mysterious terms and phrases not often heard in the real world of red lights, traffic jams and fender benders. But a basic understanding of the language can save you plenty and give you peace of mind. The short quiz below will test your auto insurance IQ. Answer all 10 questions, click on "submit" and find out if you're an insurance genius!

1. A lot of agents recommend you purchase loss-of-use coverage. If you�re in an accident, this would reimburse you for:

   a. the cost of the wrecked parts of the car.

   b. paying the bills if you or someone else is injured and can't work.

   c. renting a car if yours is damaged.

2. If your insurance company elects subrogation after a claim, that means:

   a. you're being sued.

   b. you're being dropped.

   c. the company will pay you, then go after reimbursement from whomever is responsible.

   d. a third party will mediate your dispute and decide who is responsible for what.

3. After an accident, you find out your insurance company wants to fix your car with aftermarket parts. That means the mechanic will be using parts that are:

   a. used or reconditioned.

   b. not made by the manufacturer of the car.

   c. made by your manufacturer but sold only at Midnight Auto.

4. If you carry personal injury protection, you are covered if:

   a. someone in your car is injured in an accident.

   b. someone in the other car is injured in an accident.

   c. you hit an uninsured motorist.

5. Your policy covers the basic limits of liability. That means you have:

   a. a good, basic policy.

   b. the minimum coverage your state allows.

   c. a policy that covers you, but only if you aren't criminally negligent.

6. If your policy includes comprehensive, it will cover:

   a. any kind of loss or damage you cause with your car.

   b. any kind of loss or damage you cause to another car.

   c. loss or damage to your car that doesn't involve a collision.

7. Collision insurance protects:

   a. your car.

   b. the other car.

   c. anything you hit while driving.

8. Gap insurance is a popular option these days. It covers:

   a. the difference between the limit of your insurance and the damages you cause.

   b. the difference between how much you owe on your car and its value if it's totaled.

   c. the difference between the total of your assets and the total judgments against you if you're sued after an accident.

9. Personal property liability covers you if you:

   a. admit fault in an accident.

   b. hit another car.

   c. hit someone's mailbox.

10. Your insurance policy calls for alternative-dispute resolution. That means if you have a disagreement with your carrier you'll probably end up:

    a. in court.

    b. in mediation.

    c. in arbitration.

    d. B or C.