1. Auto insurance rates for teenage drivers are higher than for other drivers because:
A. Teens are new customers to the insurance market
B. Teen drivers are more likely to drive drunk
C. Teens pose a higher accident risk due to inexperience
D. Teens drive more often than other groups of drivers

2. Seat belt use is the lowest among which group of occupants in passenger vehicles?
A. Elementary school students
B. Middle school students
C. High school students
D. Adults

3. Your auto insurance premium is based, in part, on which of the following:
A. The car’s sticker price
B. The cost to repair it
C. The car’s overall safety record
D. All of the above

4. In 2007 the typical U.S. driver’s auto insurance premiums were reduced thanks to:
A. Safer vehicles and roads
B. Graduated licensing programs for teens
C. The baby boomer generation
D. All of the above

5. The death rate for 16- and 17-year-old drivers with teen passengers is nearly ___ times the rate for drivers ages 16-17 without passengers.
A. 2
B. 4
C. 6
D. 8

6. Rates for auto insurance tend to be higher in urban areas because:
A. There is more traffic congestion
B. Roads were not laid out with the automobile in mind
C. Crime is higher
D. All of the above

7. Students who have a grade point average of ___ can generally get a discount on their car insurance.
A. A
B. B or higher
C. C or higher
D. There is no discount for good grades

8. A 16-year-old is ______ times more likely to be killed in a car accident than an adult age 65-69.
A. 3
B. 10
C. 15
D. 20

Answers:

1. Answer: C
Rates for auto insurance for teenage drivers are always higher than for other drivers because as a group they pose a higher risk of accidents than more experienced drivers. Source: Insurance Information Institute (www.iii.org)

2. Answer: C
Belt use among high school students is lower than among other occupants in passenger vehicles. Even when adults are driving and using belts themselves, many teens riding with them aren’t buckling up. Source: Insurance Information Institute (www.iii.org)
3. Answer: D
Your premium is based in part on the car’s sticker price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injury or theft. Source: Insurance Information Institute (www.iii.org)

4. Answer: D
Safer vehicles and roads, as well as graduated licensing programs for teens, are other factors driving the downward trend in auto insurance premium costs. The changing demographics of the U.S. population, with millions of baby boomers born between 1946 and 1964 now all in what insurers calculate to be their safest driving years, are also contributing to these cost reductions. Source: Insurance Information Institute (www.iii.org)

5. Answer: B
The death rate for 16- and 17-year-old drivers transporting only passengers younger than 20 was almost 4 times the rate for drivers ages 16-17 without passengers. Source: Insurance Institute for Highway Safety (www.iihs.org)

6. Answer: D
Rates for auto insurance tend to be higher in urban areas because there is more traffic congestion in cities, and in older cities the roads may not have been laid out with the automobile in mind. Crime may also be higher in urban centers, raising comprehensive coverage prices. Source: Insurance Information Institute (www.iii.org)

7. Answer: B
The Good Student Discount is generally available to students who have a grade point average of a B or higher. Source: Insurance Information Institute (www.iii.org)

8. Answer: A
Among licensed drivers, young people between the ages of 15 and 20 have the highest rate of fatal crashes relative to other age groups, including the elderly. In fact, the risk of being involved in a fatal crash for teens is three times greater than for drivers age 65 to 69. Source: Insurance Information Institute (www.iii.org)