California Property & Casualty Broker-AgentCasualty InsuranceEasy
A client in California is purchasing a Personal Auto Policy. They are interested in coverage that will pay for damage to their own vehicle if they collide with another car, regardless of fault. Which type of coverage should the agent recommend?
- AUninsured Motorist Coverage
- BProperty Damage Liability
- CBodily Injury Liability
- DCollision Coverage
Show answer & explanationAnswer & explanation
Correct answer: D. Collision Coverage
Collision Coverage in a Personal Auto Policy pays for damage to the insured's own vehicle resulting from a collision with another object or upset of the vehicle, regardless of who is at fault. It is specifically designed to cover physical damage to the insured's car.
Why the other options are wrong
- A. Uninsured Motorist Coverage protects the insured if they are hit by an uninsured or underinsured driver.
- B. Property Damage Liability covers damage to other people's property for which the insured is legally responsible.
- C. Bodily Injury Liability covers injuries to others for which the insured is legally responsible.
Collision Coverage (PAP)
Collision Coverage in a Personal Auto Policy pays for direct and accidental loss to a covered auto caused by collision with another object or by upset of the covered auto.
- Covers damage to the insured's own vehicle.
- Applies regardless of fault in the accident.
- Subject to a deductible.
Memory trick: My Car Needs Protection, Don't Forget Collision!