Which coverage pays for damage to your own vehicle resulting from a collision?

Which coverage pays for damage to your own vehicle resulting from a collision?

• A. Third Liability coverage
• B. Collision coverage
• C. No-fault Accident Benefits
• D. Replacement Cost Endorsement

Answer: (B)

This question tests understanding of which auto insurance coverage handles damage to your own car after a crash. Collision coverage pays for repairs or replacement of your vehicle following a collision with another car or object, up to your policy limits and minus your deductible. It focuses on property damage to your own car, regardless of fault in the crash (subject to policy terms). This is distinct from liability coverage, which pays for damage you cause to others, and from no-fault accident benefits, which cover injuries rather than property damage. A replacement cost endorsement relates to how your car’s value is calculated for replacement, not the basic collision damage itself. So the coverage that pays for damage to your own vehicle resulting from a collision is collision coverage.

This question tests understanding of which auto insurance coverage handles damage to your own car after a crash. Collision coverage pays for repairs or replacement of your vehicle following a collision with another car or object, up to your policy limits and minus your deductible. It focuses on property damage to your own car, regardless of fault in the crash (subject to policy terms). This is distinct from liability coverage, which pays for damage you cause to others, and from no-fault accident benefits, which cover injuries rather than property damage. A replacement cost endorsement relates to how your car’s value is calculated for replacement, not the basic collision damage itself. So the coverage that pays for damage to your own vehicle resulting from a collision is collision coverage.