Property and Casualty Insurance Practice Exam

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What type of losses does Comprehensive coverage address in auto insurance?

Losses due to collisions
Property damage losses other than collisions
Liability for injuries to others
Losses from mechanical failures

The correct answer is: Property damage losses other than collisions

Comprehensive coverage in auto insurance is designed to protect against losses that are not the result of a collision. This type of coverage addresses a wide range of incidents that can cause damage to a vehicle, such as theft, vandalism, natural disasters (like floods and storms), falling objects (trees, for instance), and damage from animals. Unlike collision coverage, which specifically covers damages resulting from hitting another vehicle or object, comprehensive coverage encompasses various non-collision-related incidents, making it a vital component of a well-rounded auto insurance policy. In this context, property damage losses that occur due to events other than collisions include many scenarios that drivers may encounter, underscoring the importance of having comprehensive coverage to provide protection against unexpected events.