What benefit does the RoadStar Package provide when a vehicle is stolen and then recovered?

Prepare for the IBABC Automobile Insurance Exam with our multiple choice questions with explanations and hints. Study effectively with our engaging quizzes and ensure you're exam-ready!

The RoadStar Package offers a benefit where the deductible may be reduced in the case of a stolen vehicle that is later recovered. This is a valuable feature for policyholders, as it decreases the out-of-pocket costs associated with an insurance claim following a theft.

When a vehicle is stolen, the owner typically faces a deductible when they file a claim to cover damages or losses. If the vehicle is recovered, rather than having to bear the full deductible, the reduction allows for significant savings, encouraging policyholders to file claims without the fear of high costs. This feature not only provides financial relief but also enhances the overall value of having the RoadStar Package as part of an automobile insurance policy.

Other options do not provide similar benefits. Increasing the deductible or halving the coverage amount would impose additional financial burdens rather than alleviating them in a recovery scenario. Thus, the reduction of the deductible stands out as a distinct and advantageous feature provided by the RoadStar Package.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy