Future Business Leaders of America (FBLA) Business Calculations Practice Test

Which type of insurance primarily focuses on covering losses related to the use of vehicles?

1. Health insurance

2. Car insurance

3. Life insurance

4. Property insurance

The correct answer is: Car insurance

Car insurance is specifically designed to cover losses associated with the use of vehicles. This type of insurance provides financial protection against damages resulting from accidents, theft, vandalism, and other risks that might affect a vehicle. Car insurance typically encompasses various coverages, such as liability coverage, collision coverage, and comprehensive coverage, ensuring that drivers are protected against potential financial burdens arising from incidents involving their vehicles. Health insurance, on the other hand, focuses on covering medical expenses related to healthcare services. Life insurance provides financial support to beneficiaries upon the policyholder's death, and property insurance protects physical assets such as homes or businesses from damages caused by events like fire or natural disasters. None of these other types of insurance are related to vehicle use, which reinforces that car insurance is the right choice for addressing vehicle-related losses.