California Property & Casualty Broker-AgentCasualty InsuranceMedium
A business client operates a fleet of delivery trucks. They are purchasing a Commercial Auto Policy and are reviewing the Physical Damage coverage options. They want coverage for damage to their own vehicles caused by events other than collision, such as fire, theft, or vandalism. Which coverage option should they select?
- ASpecified Causes of Loss Coverage
- BUninsured Motorist Property Damage
- CCollision Coverage
- DComprehensive Coverage
Show answer & explanationAnswer & explanation
Correct answer: D. Comprehensive Coverage
Comprehensive Coverage in a Commercial Auto Policy provides protection for damage to the insured's vehicle from perils other than collision, including fire, theft, vandalism, falling objects, and striking an animal.
Why the other options are wrong
- A. Specified Causes of Loss Coverage is a more restrictive form of 'other than collision' coverage, listing only specific perils, whereas Comprehensive is broader.
- B. Uninsured Motorist Property Damage covers damage to the insured's vehicle caused by an uninsured driver, not general 'other than collision' perils.
- C. Collision Coverage specifically covers damage to the insured's vehicle resulting from impact with another object or upset.
Commercial Auto Comprehensive Coverage
A type of physical damage coverage in a Commercial Auto Policy that protects the insured's vehicles against losses from perils other than collision, such as fire, theft, vandalism, hail, falling objects, and contact with animals.
- Covers 'other than collision' events.
- Includes perils like fire, theft, vandalism, weather.
- Typically subject to a deductible.
Memory trick: Comprehensive covers all, except collision's fall.