Auto Insurance on the P&C Exam: 6 Practice Questions That Catch Everyone Off Guard

Auto Insurance on the P&C Exam — 6 Practice Questions That Catch Everyone Off Guard Auto insurance is one of the most heavily tested sections on the P&C licensing exam — and it's full of traps. These 6 practice questions cover the concepts that candidates miss most often. Q1: A driver has a 100/300/50 split-limit policy. What does each number represent? Answer: 100 = $100,000 max bodily injury (BI) per person. 300 = $300,000 max BI per accident (total for all injured parties). 50 = $50,000 max property damage (PD) per accident. The exam loves to test whether you can identify which limit applies to which scenario. Q2: What's the difference between PIP and MedPay? Answer: PIP (Personal Injury Protection) is broader — it covers medical expenses AND lost wages, regardless of who's at fault. MedPay covers medical expenses only, and it's typically secondary to other health insurance. Some states require PIP (no-fault states), while MedPay is optional in most states. The exam trap: assuming they're the same thing. They're not. Q3: When does Uninsured Motorist (UM) coverage apply vs. Underinsured Motorist (UIM) coverage? Answer: UM applies when the at-fault driver has NO insurance at all. UIM applies when the at-fault driver has insurance, but their limits are too low to fully cover your damages. The exam will give you a scenario where the other driver's limits are below your damages and ask which coverage kicks in — that's UIM, not UM. Q4: What's the difference between Collision and Other Than Collision (Comprehensive) coverage? Answer: Collision covers damage from impact with another vehicle or object (or a rollover). Other Than Collision (OTC) — also called Comprehensive — covers damage from non-collision events: theft, vandalism, fire, hail, falling objects, and animal strikes. The trap: hitting a deer. That's OTC, not Collision. The exam tests this constantly. Q5: Does an auto policy follow the car or the driver? Answer: The policy follows the CAR, not the driver. If you lend your car to a friend and they cause an accident, YOUR insurance is primary. The friend's insurance is secondary and only kicks in if your limits are exhausted. The exam loves scenarios about permissive use vs. non-permissive use — if someone takes your car without permission, coverage may be denied. Q6: What is a "medical payments" sublimit, and how does it differ from liability coverage? Answer: MedPay is a first-party coverage — it pays for the insured's own medical expenses regardless of fault. Liability coverage is third-party — it pays for damages the insured causes to OTHERS. The exam trap: candidates confuse who the payment goes to. MedPay = you/your passengers. Liability = the other party. Score yourself: • 6/6 — You're exam-ready on auto. Keep it sharp. • 4-5 — Solid, but review the UM/UIM and PIP/MedPay distinctions. • 3 or less — Auto insurance is a weak spot. Spend an extra hour on this section before test day. Pro tip: The exam almost always includes a split-limit math question (Q1 style). Practice 5 of these until the numbers are automatic. Need extra help to PASS your Property and Casualty exam? Get our on-demand program here: https://www.pandcpacademy.com/pass-your-exam-now