State Farm Auto Insurance Practice Test

How are Single-Car Policies structured?

1. Each car is covered under a single policy

2. Each auto is assigned a separate policy number

3. There is a shared coverage across vehicles

4. All vehicles must be insured under a commercial policy

The correct answer is: Each auto is assigned a separate policy number

Single-car policies are structured so that each vehicle has its own specific insurance coverage, which is often reflected by assigning a separate policy number to each auto. This means that the policy details, coverage limits, and premiums can all be tailored specifically to the unique characteristics and needs of that individual vehicle. This structure allows for greater flexibility in managing insurance for multiple vehicles, as each car can be insured based on its own risk profile and value. The other choices are related but not accurate in describing this type of policy. For instance, while a single-car policy would not share coverage across vehicles or require all vehicles to be insured under a commercial policy, it specifically delineates individual policy management through separate policy numbers for each auto.