Texas Property & Casualty Insurance Practice Exam Free - 2026

• A. Theft of your vehicle
• B. Mechanical breakdowns
• C. Your own vehicle
• D. Claims from others you injure or whose property you damage

Correct answer: D. Claims from others you injure or whose property you damage

Explanation: Auto liability coverage protects you financially when you're legally responsible for injuring others or damaging their property in an accident. It pays their medical bills, property damage, and legal defense costs.

• A. Coverage for towing after a collision
• B. Coverage for liability in a collision
• C. Coverage for damage to your vehicle from colliding with another object
• D. Coverage when vehicles are in a demolition derby

Correct answer: C. Coverage for damage to your vehicle from colliding with another object

Explanation: Collision coverage pays for damage to your own vehicle when it collides with another vehicle or object (like a tree or guardrail), regardless of who is at fault.

• A. All-inclusive collision coverage
• B. Full liability coverage
• C. Coverage for damage from non-collision events like theft, fire, or hail
• D. Coverage for all drivers

Correct answer: C. Coverage for damage from non-collision events like theft, fire, or hail

Explanation: Comprehensive coverage pays for damage to your vehicle from causes other than collision, such as theft, vandalism, fire, natural disasters, hitting an animal, or falling objects.

• A. Coverage for unlicensed drivers
• B. Coverage for driving without insurance
• C. Coverage for injuries caused by a driver who has no insurance
• D. Coverage for rental cars

Correct answer: C. Coverage for injuries caused by a driver who has no insurance

Explanation: Uninsured motorist coverage protects you if you're injured by a driver who has no liability insurance or in a hit-and-run accident. It covers your medical expenses and damages.

• A. Coverage when the at-fault driver's insurance is insufficient to cover your damages
• B. Low-cost basic insurance
• C. Coverage for drivers under 21
• D. Coverage for underpaid claims

Correct answer: A. Coverage when the at-fault driver's insurance is insufficient to cover your damages

Explanation: Underinsured motorist coverage pays the difference when the at-fault driver's liability limits are not enough to cover your damages. It fills the gap between their coverage and your actual losses.

• A. Liability coverage for medical expenses
• B. Coverage that pays medical bills for you and passengers regardless of fault
• C. Health insurance for drivers
• D. Coverage for medical equipment in vehicles

Correct answer: B. Coverage that pays medical bills for you and passengers regardless of fault

Explanation: Medical payments coverage pays for medical expenses for you and your passengers injured in an auto accident, regardless of who caused the accident. It's no-fault coverage with relatively low limits.

• A. Protection against lawsuits
• B. Personal liability coverage
• C. Protection for your vehicle's interior
• D. No-fault coverage for medical expenses, lost wages, and other costs

Correct answer: D. No-fault coverage for medical expenses, lost wages, and other costs

Explanation: Personal injury protection (PIP) is no-fault coverage that pays for medical expenses, lost wages, and other costs for you and passengers regardless of who caused the accident. It's required in no-fault states.

• A. A state without auto insurance requirements
• B. A state where no one is ever at fault
• C. A state where the government pays claims
• D. A state where each driver's insurance pays their own damages regardless of fault

Correct answer: D. A state where each driver's insurance pays their own damages regardless of fault

Explanation: In no-fault states, each driver's own insurance pays for their medical expenses and certain other losses regardless of who caused the accident. This limits lawsuits and speeds up payments.

• A. Only dwelling coverage
• B. Property only
• C. Dwelling, other structures, personal property, loss of use, liability, and medical payments
• D. Just liability and medical

Correct answer: C. Dwelling, other structures, personal property, loss of use, liability, and medical payments

Explanation: A standard homeowners policy includes: Coverage A (dwelling), Coverage B (other structures), Coverage C (personal property), Coverage D (loss of use), Coverage E (personal liability), and Coverage F (medical payments).

• A. Your personal belongings inside
• B. Liability from guests
• C. Detached garages only
• D. The structure of your home and attached structures

Correct answer: D. The structure of your home and attached structures

Explanation: Dwelling coverage (Coverage A) protects the physical structure of your home and any structures attached to it, such as an attached garage or deck, against covered perils.

• A. Detached structures on your property like fences, sheds, or detached garages
• B. Neighbors' property
• C. Other homes you own
• D. Commercial buildings

Correct answer: A. Detached structures on your property like fences, sheds, or detached garages

Explanation: Other structures coverage (Coverage B) protects structures on your property that are not attached to the dwelling, such as detached garages, fences, storage sheds, and pools.

• A. Your belongings both at home and while traveling
• B. Only items inside the home
• C. Vehicles in the garage
• D. Business equipment

Correct answer: A. Your belongings both at home and while traveling

Explanation: Personal property coverage (Coverage C) protects your personal belongings, including furniture, clothing, and electronics, whether at home or temporarily away from home (like while traveling).

No. This page is an independent study resource and is not an official exam from Texas Department of Insurance, Pearson VUE, Pearson VUE, PSI, Prometric, NIPR, NAIC, or any other regulator or exam administrator.

Start with the current candidate handbook or content outline, then review property insurance, casualty insurance, liability, auto, homeowners, commercial coverage, claims basics, ethics, and jurisdiction-specific insurance rules.

No. Practice questions can help you find weak areas, but they do not guarantee passing, licensing eligibility, or application approval.

Verify scheduling, fees, identification, prelicensing, retake, fingerprinting, and application rules through Texas Department of Insurance and the current exam-vendor resources.

Take a practice set, review missed explanations, compare weak topics against the official Texas outline, and re-test only after reviewing the relevant rules and concepts.