Study 5 Flashcards
1
Q
What is the MAIN PURPOSE of insurance for automobiles?
A
To cover LOSS or DAMAGE to the INSURED VEHICLE, including COLLISIONS and other types of DAMAGE.
2
Q
Why might a minor traffic inconvenience be a MAJOR PROBLEM for some?
A
Because their VEHICLE might need TOWING, REPAIRS, or be a TOTAL LOSS—aka, a really bad day.
3
Q
What does this study cover regarding automobile insurance?
A
It explains COVERAGE for VEHICLE DAMAGE, what’s EXCLUDED, and EXTRA BENEFITS that might help.
4
Q
TRUE or FALSE – Insurance only covers accidents that happen during rush hour.
A
FALSE! Insurance covers accidents ANYTIME, even if you crash at 2 AM getting a midnight snack.
5
Q
Besides COLLISIONS, what else does automobile insurance cover?
A
OTHER TYPES of DAMAGE—think vandalism, theft, fire… or a deer playing chicken with your car.
6
Q
What happens if a vehicle is DAMAGED BEYOND REPAIR?
A
It’s considered a TOTAL LOSS, and insurance may PAY OUT based on the vehicle’s VALUE.
7
Q
TRUE or FALSE – Insurance guarantees you’ll never be late for work.
A
FALSE! It covers your CAR, not your ALARM CLOCK.
8
Q
What are the FOUR MAIN TYPES of loss or damage coverages?
A
SPECIFIED PERILS, COMPREHENSIVE, COLLISION OR UPSET, and ALL PERILS.
9
Q
TRUE or FALSE – Physical damage coverage is always mandatory in Canada.
A
FALSE! In many places, it’s OPTIONAL, but if you LEASE or FINANCE a car, you’re probably stuck with it.
10
Q
Where is loss or damage coverage MANDATORY?
A
SASKATCHEWAN and MANITOBA – no choice, government insurance makes the rules.
11
Q
Where is loss or damage coverage OPTIONAL under government insurance?
A
BRITISH COLUMBIA – you can choose, but be prepared to pay out of pocket if you crash.
12
Q
What does loss or damage coverage indemnify you for?
A
DIRECT and ACCIDENTAL LOSS or DAMAGE to your VEHICLE and its EQUIPMENT.
13
Q
What counts as “EQUIPMENT” under loss or damage coverage?
A
Stuff PERMANENTLY ATTACHED to the vehicle—so no, your phone charger doesn’t count!
14
Q
What is the OWNER’S POLICY SECTION for loss or damage coverage in ONTARIO?
A
SECTION 7 – sounds official, but it just means ‘here’s where we cover your car.’
15
Q
What does SPECIFIED PERILS coverage protect against?
A
FIRE, THEFT, LIGHTNING, WINDSTORM, HAIL, EARTHQUAKE, RIOT, EXPLOSION, and even AIRPLANE PARTS FALLING FROM THE SKY!
16
Q
What is NOT covered under SPECIFIED PERILS?
A
VANDALISM, MALICIOUS MISCHIEF, GLASS BREAKAGE, or IMPACT WITH AN ANIMAL – you need COMPREHENSIVE for those.
17
Q
What does COMPREHENSIVE coverage include?
A
EVERYTHING EXCEPT COLLISION – think falling objects, vandalism, and yes, that deer that didn’t stop in time.
18
Q
TRUE or FALSE – A rock cracking your windshield is covered under COLLISION coverage.
A
FALSE! It’s COMPREHENSIVE, because your windshield can’t exactly ‘crash’ into a pebble.
19
Q
What does COLLISION OR UPSET coverage protect against?
A
DAMAGE from COLLISION with another vehicle, object, or flipping your car (aka, an ‘upset’ situation).
20
Q
If you HIT A DEER, is it covered under COLLISION or COMPREHENSIVE?
A
COMPREHENSIVE – because deer don’t have insurance, and it’s cheaper for you this way!
21
Q
In Nadia’s example, why is her claim under COMPREHENSIVE instead of COLLISION?
A
Because she hit a DEER, and insurers like to be nice about deer accidents (lower deductible, no penalty).
22
Q
What’s the BROADEST coverage for loss or damage?
A
ALL PERILS – it’s the ‘everything bagel’ of car insurance!
23
Q
What extra protection does ALL PERILS provide over comprehensive?
A
It covers THEFT by household members or employees who drive/service your car.
24
Q
Why might someone choose ALL PERILS coverage instead of separate options?
A
One DEDUCTIBLE for everything and often CHEAPER than buying COLLISION + COMPREHENSIVE separately.
25
TRUE or FALSE – If your car gets stolen by your roommate, comprehensive insurance covers it.
FALSE! You’d need ALL PERILS for that—otherwise, get a new roommate.
26
If you drive into a tree, which coverage applies?
COLLISION – unless the tree hits YOU first, then we’ve got bigger problems.
27
What are EXCLUSIONS in an insurance policy?
RISKS, PERILS, or PROPERTIES that are NOT COVERED—aka, 'you’re on your own for this one!'
28
TRUE or FALSE – In British Columbia, you can buy extension coverage from ICBC or private insurers.
TRUE! More options, but also more fine print to read.
29
Name one type of VEHICLE that is NOT COVERED under Autoplan if operated OFF A HIGHWAY.
VEHICLES LICENSED under SECTION 9 of the Motor Vehicle Act – basically, if it’s not meant for normal roads, don’t count on coverage.
30
What happens if you try to claim damage for a vehicle being driven by REMOTE CONTROL?
DENIED! Your insurance covers actual drivers, not your RC racing hobby.
31
TRUE or FALSE – A CAR being towed by an AIRCRAFT is covered under Autoplan.
FALSE! But if an AIRCRAFT is being towed on a HIGHWAY, weirdly, that IS covered.
32
Can you claim coverage if your car was in a RACE or HIGH-SPEED CONTEST?
NOPE! If you were pushing your car’s limits on a track, your insurance won’t push money into your bank account.
33
What happens if you drive an AMPHIBIOUS VEHICLE into the water?
Hope you can swim! Your insurance won’t cover it once it’s floating.
34
If your vehicle has CRAWLER-TYPE WHEELS, is it covered?
Only IF it’s a LICENSED TRACTOR or a SNOWMOBILE—otherwise, no coverage for your tank-on-wheels.
35
TRUE or FALSE – Nuclear explosions are covered under loss or damage coverage.
FALSE! If you’re in a nuclear explosion, your insurance claim is probably the least of your worries.
36
Will insurance cover a loss caused by WAR, INSURRECTION, or REBELLION?
NOPE! If you drive into a battlefield, your policy waves the white flag.
37
Does insurance cover WEAR AND TEAR, mechanical failure, or rust?
NO! It’s called a car insurance policy, not a maintenance plan.
38
If your RENTAL CAR is stolen because the renter never returns it, is that THEFT under your insurance?
NOPE! It’s considered CONVERSION, not theft—aka, 'they took it, but not in a criminal way.'
39
If someone tricks you into signing over your car’s title, is that covered?
Nope! VOLUNTARY SURRENDER is on you, even if you were duped.
40
Are personal items like CLOTHES or ELECTRONICS in your car covered?
NO! Get a home or renters insurance policy for that stuff.
41
TRUE or FALSE – Music USB drives are covered under loss or damage coverage.
TRUE… but ONLY if they’re plugged in. If they’re in your glove box, tough luck!
42
What happens if you get into an accident while DRIVING UNDER THE INFLUENCE?
NO COVERAGE! And you might also get a CRIMINAL RECORD—double bad news.
43
Will your insurance cover your car if a FAMILY MEMBER steals it?
NOPE! Theft by people in your household is NOT COVERED under comprehensive.
44
TRUE or FALSE – If you slash your own tires, it’s covered.
FALSE! But if someone ELSE vandalizes them, that’s a different story.
45
What’s the THC limit for a LOWER-LEVEL IMPAIRED DRIVING OFFENSE in Canada?
Between 2-5 ng in the blood = a fine of up to $1,000.
46
TRUE or FALSE – Police need a reason to demand a roadside breath test for alcohol.
FALSE! They can test ANY DRIVER, ANY TIME—no excuses.
47
What happens if you refuse a roadside breath test?
CRIMINAL CHARGE, just like being caught impaired. Not worth it!
48
What’s the minimum penalty for a FIRST-OFFENSE ALCOHOL-IMPAIRED DRIVING conviction?
A $1,000 FINE—plus a lifetime of expensive insurance premiums.
49
What is a DEDUCTIBLE in car insurance?
The amount YOU PAY on a claim BEFORE your insurance kicks in—kind of like an entrance fee for coverage.
50
TRUE or FALSE – A deductible is only paid if you are at fault for an accident.
FALSE! You pay the DEDUCTIBLE no matter WHO is at fault. Insurance doesn’t care about blame when it comes to this.
51
Why do insurers use DEDUCTIBLES?
To keep PREMIUM COSTS DOWN and avoid processing tiny claims that cost more to handle than to pay out!
52
TRUE or FALSE – In ONTARIO, losses from FIRE or LIGHTNING have NO DEDUCTIBLE.
TRUE! Your car could literally be struck by lightning, and at least you won’t pay a deductible.
53
What’s the STANDARD DEDUCTIBLE for COLLISION and COMPREHENSIVE coverage with ICBC?
$300—unless you change it (for a price, of course).
54
What happens if you INCREASE your deductible?
Your PREMIUMS go DOWN! Higher deductible = lower cost, but more out-of-pocket if you crash.
55
What happens if you LOWER your deductible?
Your PREMIUMS go UP! Because now the insurer has to pay more if something happens.
56
TRUE or FALSE – In BC, the DEDUCTIBLE for fire or lightning damage under private insurance is $0.
TRUE! Private insurers are feeling generous—but if you're with ICBC, you'll still pay a deductible.
57
If your windshield gets cracked by a flying rock, what’s your deductible under ICBC?
$200 if you have a $300 comprehensive deductible—otherwise, it MATCHES your comprehensive deductible.
58
What is BVDC, and does it have a deductible?
BASIC VEHICLE DAMAGE COVERAGE in BC—covers up to $200,000 with NO DEDUCTIBLE for the part you’re NOT at fault for.
59
TRUE or FALSE – In direct compensation provinces, having a DCPD deductible is mandatory.
FALSE! It’s OPTIONAL—many drivers skip it to avoid paying a deductible when someone else hits them.
60
If you are 75% NOT at fault for an accident in BC, how much of your COLLISION DEDUCTIBLE do you pay?
25%—only the part you ARE at fault for gets hit with a deductible.
61
TRUE or FALSE – The more at-fault you are, the more of your COLLISION DEDUCTIBLE you pay.
TRUE! Insurance companies believe in 'you break it, you pay (at least some of it).'
62
In Li Ming’s example, what was her total deductible cost?
$350—$225 from DCPD and $125 from COLLISION.
63
How much did Li Ming’s insurer pay her in total after her accident?
$11,650—meaning she got most of her car’s $12,000 value back (minus the deductibles).
64
If your DCPD deductible is $300, but you're only 75% not at fault, how much gets deducted?
$225—because you only get to ignore the part you weren’t responsible for.
65
TRUE or FALSE – A deductible is applied to every claim, no matter what.
FALSE! FIRE and LIGHTNING losses in some provinces have NO DEDUCTIBLE.
66
If Almira chooses a LOWER deductible, what happens to her premium?
It goes UP—less deductible = more insurer risk = more $$$ from you.
67
TRUE or FALSE – You can pick different deductibles for different types of loss or damage coverage.
TRUE! You can mix and match based on what you're willing to pay out-of-pocket.
68
What are the ADDITIONAL BENEFITS under loss or damage coverages?
PAYMENT OF CHARGES, FORGOING RIGHT TO RECOVER, TEMPORARY SUBSTITUTE AUTOMOBILES, and LOSS OF USE DUE TO THEFT.
69
TRUE or FALSE – If your car is shipped by boat and tossed overboard to save the ship, your insurance helps cover the loss.
TRUE! It’s called GENERAL AVERAGE, and yes, maritime law is wild.
70
What is SALVAGE in car insurance?
The LEFTOVER VALUE of a wrecked car—basically, what’s still worth something after disaster strikes.
71
TRUE or FALSE – If a fire department charges you for putting out your flaming car, insurance might cover it.
TRUE! If it was caused by your insured car, your policy might pick up the tab.
72
If your car gets wrecked in the U.S. and you have to scrap it there, what surprise fee might insurance cover?
U.S. CUSTOMS DUTIES—because technically, your totaled car was 'imported' into the U.S. (Who knew?)
73
What is SUBROGATION?
When your INSURER sues the person responsible for your loss—unless they waive this right.
74
TRUE or FALSE – If you lend your car to a friend and they crash, your insurer can sue them.
FALSE! Your insurer typically WAIVES subrogation against PERMITTED drivers.
75
When does the insurer NOT waive subrogation?
If the person was using the car for a GARAGE BUSINESS, VIOLATED POLICY TERMS, or LIED ABOUT THE DAMAGE.
76
TRUE or FALSE – If a parking attendant damages your car, your insurer will pay but recover the cost from the garage.
TRUE! You’re covered, but the garage gets the bill.
77
What is a TEMPORARY SUBSTITUTE AUTOMOBILE?
A vehicle you DON’T OWN that replaces yours due to BREAKDOWN, THEFT, REPAIR, or DESTRUCTION.
78
TRUE or FALSE – If you rent a car while yours is in the shop, your own policy might cover damage to it.
TRUE! But your insurance only covers what you’re LEGALLY LIABLE for.
79
If the rental company’s policy has a $1,000 deductible and your policy has a $300 deductible, how much does your insurer pay?
$700—the difference between the two deductibles.
80
What is a Temporary Substitute Automobile (TSA)?
A vehicle you DON’T OWN that replaces yours due to BREAKDOWN, THEFT, REPAIR, or DESTRUCTION.
81
TRUE or FALSE – If the TSA has no physical damage coverage, your own damage coverage can kick in.
TRUE! But only if the loss is covered under your policy.
82
Who is responsible for LIABILITY coverage on a TSA?
The OWNER of the TSA must have at least $200,000 in third-party liability coverage.
83
What costs does Autoplan cover if your car is STOLEN and you have COMPREHENSIVE or SPECIFIED PERILS coverage?
RENTAL CARS, TAXIS, or PUBLIC TRANSPORTATION—because walking sucks.
84
TRUE or FALSE – If your car is stolen, you can get a rental immediately.
FALSE! There’s a 72-HOUR WAITING PERIOD before coverage kicks in.
85
What’s the MAXIMUM amount Autoplan will reimburse for LOSS OF USE due to theft?
$40 per DAY, up to a TOTAL of $800.
86
When does loss of use coverage END?
When your car is REPLACED, REPAIRED, or the insurer SETTLES your claim.
87
TRUE or FALSE – Loss of use coverage applies even if only part of your car was stolen.
FALSE! The WHOLE CAR must be stolen for this coverage to apply.
88
TRUE or FALSE – Every insurance claim is treated as a separate occurrence.
TRUE! Each claim stands alone, like a sad, lonely car in the shop.
89
What happens if you don’t report a THEFT to the POLICE within 48 hours?
ICBC can DENY your claim—so don’t wait, dial up the cops!
90
TRUE or FALSE – If you don’t update ICBC with your car’s actual location, your coverage could be affected.
TRUE! Your premium must match your real address—no sneaky business allowed.
91
Can you make TEMPORARY REPAIRS to drive your damaged car to a repair shop?
ONLY if ICBC says YES—otherwise, you’re paying for those fixes yourself.
92
TRUE or FALSE – If someone damages your car while legally borrowing it, ICBC can still try to recover the cost.
FALSE! ICBC WAIVES recovery—unless that person VIOLATED POLICY TERMS, LIED, or was part of a GARAGE BUSINESS.
93
What is a BILL OF LADING, and why does it matter for ICBC recovery?
A legal document for TRANSPORTED GOODS—if your car is in someone’s care under one, ICBC might limit how much it recovers.
94
If your leased car is damaged, who can ICBC settle the claim with?
The OWNER, the LESSEE, or both—because everyone wants their money back.
95
TRUE or FALSE – If you don’t report a total loss, a LIENHOLDER (like your bank) can do it for you.
TRUE! If they have a financial stake, they can step in and file that claim.
96
Who gets paid FIRST if a car with a loan is written off?
The LIENHOLDER—because banks like getting their money back before you do.
97
TRUE or FALSE – If ICBC pays the lienholder, the insured gets nothing.
FALSE! You still get paid, but only after the lienholder takes their share.
98
What must an insured do if they have MULTIPLE INSURANCE policies covering the same damage?
INFORM ICBC immediately—no double-dipping allowed!
99
TRUE or FALSE – If you have two insurance policies, each will pay 100% of your claim.
FALSE! They split it based on their POLICY LIMITS—no free money here!
100
What happens if one insurer has a lower coverage limit than ICBC?
The payout is based on the LOWEST LIMIT—so it’s only as good as the weakest policy.
101
What are the FIVE common types of auto insurance fraud?
FAKE INSURANCE SALES, PHANTOM VEHICLES, AUTO THEFT RINGS, STAGED ACCIDENTS, and VEHICULAR ARSON.
102
TRUE or FALSE – Insurance fraud is just a minor inconvenience for insurers.
FALSE! Fraud costs insurers (and honest drivers) MILLIONS and sometimes funds organized crime.
103
What is a GHOST BROKER?
A scammer who sells FAKE INSURANCE, takes the victim’s money, and disappears faster than a getaway driver.
104
TRUE or FALSE – If you buy insurance in a coffee shop for cash, it’s probably a great deal.
FALSE! It’s probably a scam. Real brokers don’t meet at Starbucks with sketchy pink slips.
105
How do some fraudsters IMPERSONATE VICTIMS in insurance scams?
They use the victim’s info to buy real insurance but LIE about details to get a lower price—then CANCEL it.
106
What is a PHANTOM VEHICLE in insurance fraud?
A car that DOESN’T EXIST but is registered, 'stolen,' and claimed for insurance money.
107
TRUE or FALSE – After natural disasters, fraudsters sometimes use abandoned VINs for scams.
TRUE! They recycle VINs from destroyed cars to make fake claims or register stolen vehicles.
108
Why do criminals steal LUXURY LEASED VEHICLES?
To SHIP them overseas and RESELL them for more than their original price—plus, they often claim insurance money too.
109
What are some ways theft rings commit fraud with stolen cars?
They SWAP VINs, create FAKE OWNERSHIP papers, buy insurance, then SELL the stolen car to unsuspecting buyers.
110
TRUE or FALSE – Staged accidents are harmless and just cost the insurance companies a little money.
FALSE! They are DANGEROUS, cost MILLIONS, and increase premiums for EVERYONE.
111
What is the purpose of ACCIDENT RECONSTRUCTION?
To use vehicle data, physics, and crash analysis to EXPOSE FRAUDULENT CLAIMS.
112
What does an AIRBAG MODULE record?
SPEED, THROTTLE POSITION, SEATBELT USAGE, and other data that can prove if a crash was real or staged.
113
What is the most common ACCELERANT used in vehicle arson?
GASOLINE—because fraudsters aren’t that creative.
114
TRUE or FALSE – If your car burns in an isolated area, investigators won’t find any evidence.
FALSE! Footprints, tire tracks, and even missing parts can help catch fraudsters.
115
How can an insurance investigator tell if a car fire was ARSON?
If the fuel line was TAMPERED WITH, the KEY was LEFT IN the ignition, or expensive parts were removed beforehand.
116
What is ÉQUITÉ ASSOCIATION?
A Canadian organization that FIGHTS INSURANCE FRAUD using data analytics and investigations.
117
TRUE or FALSE – VIN searches can reveal if a car was previously stolen or damaged.
TRUE! A mismatched VIN is a giant RED FLAG.
118
TRUE or FALSE – If a 23-year-old unemployed person tries to insure a $150,000 Tesla, that’s totally normal.
FALSE! That’s a BIG RED FLAG for possible fraud.
119
What are some RED FLAGS that might indicate auto insurance fraud?
NO PREVIOUS INSURANCE, CASH PURCHASE, INCORRECT VINs, UNEXPLAINED DAMAGE, or a SKETCHY VEHICLE HISTORY.
120
TRUE or FALSE – A vehicle with low value but expensive equipment is a possible fraud indicator.
TRUE! It could mean someone is trying to insure fake or exaggerated accessories.
121
What are the FOUR main types of OWN DAMAGE coverage?
SPECIFIED PERILS, COMPREHENSIVE, COLLISION OR UPSET, and ALL PERILS.
122
TRUE or FALSE – Loss or damage coverage always covers everything.
FALSE! Exclusions exist for things like WEAR AND TEAR, THEFT BY A ROOMMATE, and even RADIOACTIVE MATERIAL (because mutants aren’t insurable).
123
What is a DEDUCTIBLE in auto insurance?
The amount YOU PAY before insurance pays the rest—it’s like the 'cover charge' before your policy kicks in.
124
TRUE or FALSE – In BC, there is NO deductible under BVDC (Basic Vehicle Damage Coverage).
TRUE! ICBC is feeling generous—at least for that part.
125
What are some ADDITIONAL BENEFITS under auto insurance at NO extra charge?
PAYMENT OF CHARGES, FORGOING RIGHT TO RECOVER, TEMPORARY SUBSTITUTE AUTOMOBILE COVERAGE, and LOSS OF USE DUE TO THEFT.
126
What conditions must insureds follow when making a CLAIM?
Follow GENERAL TERMS, get ICBC’s CONSENT for TEMPORARY REPAIRS, and disclose MULTIPLE INSURERS if applicable.
127
What is a GHOST BROKER?
A scammer selling FAKE insurance that vanishes along with your money.
128
TRUE or FALSE – Phantom vehicle fraud involves claiming a stolen car that NEVER EXISTED.
TRUE! It's like making a missing person report for an imaginary friend.
129
Why do auto theft rings steal cars?
To SHIP and SELL overseas, use them in STAGED COLLISIONS, or STRIP them for valuable PARTS.
130
TRUE or FALSE – Staged accidents only impact insurance companies.
FALSE! They put real people in danger and drive up premiums for EVERYONE.
131
What is the MOST COMMON accelerant used in VEHICULAR ARSON?
GASOLINE—because criminals like to keep it simple.
132
How do insurers COMBAT FRAUD?
DATA ANALYTICS, PRE-INSURANCE INSPECTIONS, and IDENTIFYING RED FLAGS like sketchy VINs or cash deals on luxury cars.
133
TRUE or FALSE – If an unemployed 23-year-old tries to insure a $150,000 Tesla, that’s totally normal.
FALSE! That’s a HUGE RED FLAG—unless they invented Bitcoin at 12.
134
What is OWN DAMAGE COVERAGE?
Insurance that covers DAMAGE to YOUR vehicle, not someone else’s.
135
What is SPECIFIED PERILS coverage?
Covers DAMAGE from LISTED risks like FIRE, THEFT, or EXPLOSIONS (but not bad parking).
136
What is COMPREHENSIVE auto insurance?
Covers pretty much EVERYTHING EXCEPT COLLISION—think falling trees, vandalism, and rogue deer.
137
What is COLLISION COVERAGE?
Pays for damage when your car HITS something—another car, a tree, or your own garage door.
138
What is ALL PERILS coverage?
The 'VIP package'—combines COLLISION and COMPREHENSIVE, plus covers theft by shady roommates or employees.
139
What is a DEDUCTIBLE in car insurance?
The amount YOU PAY before insurance covers the rest.
140
What is BVDC?
BC’s BASIC coverage that pays up to $200K for your car’s damage—with NO DEDUCTIBLE if you weren’t at fault.
141
What is DCPD?
Coverage that pays for damage to YOUR car when someone ELSE is at fault.
142
What is SUBROGATION?
When your insurer PAYS your claim, then goes after the GUILTY PARTY to get their money back.
143
What is a TEMPORARY SUBSTITUTE AUTOMOBILE (TSA)?
A BORROWED or RENTED car that temporarily replaces your insured car if it’s being fixed.
144
What is LOSS OF USE coverage?
Pays for a rental car, taxi, or bus fare while your stolen car is MIA.
145
What is INSURABLE INTEREST?
You must have a FINANCIAL STAKE in something to insure it—no random Ferraris allowed.
146
What is SALVAGE VALUE?
The 'leftover' value of a wrecked car.
147
What is a STAGED COLLISION?
A FAKE accident set up to make fraudulent claims.
148
What is SALVAGE VALUE?
The "leftover" value of a wrecked car.
## Footnote
Example: After a car fire, the only thing salvageable might be the hubcaps.
149
What is a STAGED COLLISION?
A FAKE accident set up to make fraudulent claims.
## Footnote
Example: If a driver slams the brakes to MAKE you hit them, congrats—you’re in a scam.
150
What is VEHICULAR ARSON?
Setting a car on fire to commit insurance fraud.
## Footnote
Example: "My car exploded by itself!" Sure it did, Steve.
151
What is a VIN?
Your car’s unique "fingerprint" for registration and insurance.
## Footnote
Example: If your VIN says Toyota but your car says Ferrari, something’s up.
152
What is INSURANCE FRAUD?
Lying to get an insurance payout—aka, a great way to get caught.
## Footnote
Example: "My car was stolen!" Car is parked in their driveway—Oops.
153
What is a PRE-INSURANCE INSPECTION?
A check-up to ensure a car EXISTS and is in good shape before insuring it.
## Footnote
Example: Stops people from insuring totaled cars—nice try, fraudsters.
154
What is an ENDORSEMENT in insurance?
A policy ADD-ON that changes or expands coverage.
## Footnote
Example: Want rental car coverage? That’s an endorsement!
155
What is ACTUAL CASH VALUE?
The current MARKET VALUE of your car, NOT what you paid for it.
## Footnote
Example: You bought it for $30K, but ACV says it’s worth $15K now—depreciation hurts.
156
What is ACCIDENT RECONSTRUCTION?
Using DATA and SCIENCE to figure out how a crash happened.
## Footnote
Example: "I was only going 20 km/h!" Airbag data says 80 km/h—Busted.
157
What are RED FLAGS in insurance?
Warning signs of potential fraud.
## Footnote
Example: A 19-year-old insuring a $200K Bentley? Yeah, that’s a red flag.
158
What is the INSURANCE (VEHICLE) ACT?
BC’s law governing auto insurance—ICBC’s rulebook.
## Footnote
Example: If you crash, this Act decides what happens next.
