In auto physical damage coverage, which perils are typically covered under Collision and which under Comprehensive, and how do deductibles apply?

In auto physical damage coverage, which perils are typically covered under Collision and which under Comprehensive, and how do deductibles apply?

• A. Collision covers weather events; Comprehensive covers collisions.
• B. Collision covers impact with another object or vehicle; Comprehensive covers non-collision perils such as theft, fire, vandalism, weather; deductibles apply to each covered loss event.
• C. Collision covers theft; Comprehensive covers impact with objects; deductibles apply to every other loss.
• D. Both cover all perils equally.

Answer: (B)

The main idea is how auto physical damage perils are divided and how deductibles work. Collision coverage pays for damage from an impact with another object or vehicle (and can include overturns). Comprehensive coverage handles non-collision events such as theft, fire, vandalism, and weather-related damage. The deductible aspect means you pay a set amount out of pocket for each loss event you claim, with separate deductibles often applying to collision and comprehensive. So for every qualifying loss, you’re responsible for the corresponding deductible, and if you have multiple incidents, you’d pay the deductible for each one.

The main idea is how auto physical damage perils are divided and how deductibles work. Collision coverage pays for damage from an impact with another object or vehicle (and can include overturns). Comprehensive coverage handles non-collision events such as theft, fire, vandalism, and weather-related damage. The deductible aspect means you pay a set amount out of pocket for each loss event you claim, with separate deductibles often applying to collision and comprehensive. So for every qualifying loss, you’re responsible for the corresponding deductible, and if you have multiple incidents, you’d pay the deductible for each one.