Property and Casualty Insurance Practice Exam

What scenario does Collision coverage typically apply to?

1. Impact involving any non-automobile object

2. Rollover of an insured vehicle

3. Any vehicle damaged in a theft

4. Damage incurred while parked

The correct answer is: Rollover of an insured vehicle

Collision coverage is designed specifically to cover damage to the insured vehicle as a result of a direct impact with another vehicle or an object. This includes scenarios such as a rollover, where the insured vehicle is damaged due to it flipping over. The key aspect of collision coverage is that it applies irrespective of who is at fault in the incident, making it critical for protection against physical damage from collisions. While damage involving a non-automobile object is also typically covered under collision, the main distinction is that collision specifically relates to impact scenarios. Losses incurred due to theft or while parked would fall under different types of coverage, such as comprehensive or uninsured motorist coverage, rather than collision. These details clarify the specific area where collision coverage is applicable, highlighting why a rollover incident would precisely align with the intent and protection of this particular insurance component.