Property & Casualty Insurance Exam (National Portion)Property and Casualty Insurance BasicsMedium
A personal auto policy includes coverage for damage to the insured's vehicle caused by hitting an animal, falling objects, or fire. However, damage caused by a collision with another vehicle or overturning is specifically covered under a different section. The coverage described (animal hit, falling objects, fire) is characteristic of which type of auto coverage?
- AUninsured Motorist Coverage
- BComprehensive Coverage
- CCollision Coverage
- DLiability Coverage
Show answer & explanationAnswer & explanation
Correct answer: B. Comprehensive Coverage
Comprehensive coverage (also known as 'Other Than Collision') in an auto policy covers losses to the insured's vehicle from perils other than collision. These typically include fire, theft, vandalism, falling objects, and hitting an animal.
Why the other options are wrong
- A. Uninsured Motorist coverage protects the insured from bodily injury caused by an uninsured or hit-and-run driver.
- C. Collision coverage pays for damages to the insured's vehicle from impact with another object or overturning.
- D. Liability coverage pays for damage to others caused by the insured.
Comprehensive Coverage (Auto)
Part of an auto insurance policy that pays for damage to your car due to incidents other than a collision, such as fire, theft, vandalism, falling objects, or hitting an animal.
- Also known as 'Other Than Collision' coverage
- Covers a broad range of non-collision perils
- Typically includes a deductible
Memory trick: COLLISION hits things, COMPREHENSIVE covers everything else.