Arizona Adjuster Practice Exam

What is typically the purpose of collision coverage in an auto policy?

1. Protect against theft

2. Cover damages from a collision

3. Cover rental car expenses

4. Provide liability coverage

The correct answer is: Cover damages from a collision

Collision coverage is designed specifically to cover damages to your vehicle resulting from a collision, regardless of who is at fault. This type of coverage pays for the repair or replacement of your car after an accident involving another vehicle or object, such as a tree or guardrail. It functions independently of other types of insurance, such as liability coverage, which protects against harm caused to others. The focus of collision coverage is solely on the physical damage to your vehicle and does not include protection against theft, rental expenses, or liability for damages caused to others. Therefore, it is clearly understood that the primary purpose of collision coverage is to address the financial impact associated with damages incurred during an accident involving your automobile.