Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Which type of damages does collision coverage typically cover?

1. Damages from colliding with another vehicle

2. Vandalism and theft

3. Injuries to passengers

4. Natural disaster damages

The correct answer is: Damages from colliding with another vehicle

Collision coverage is specifically designed to protect against damages to a vehicle resulting from a collision with another vehicle or object, such as a guardrail or tree. This type of insurance aims to cover the repair costs needed after such incidents occur. The focus of collision coverage is on the physical damage to the insured's vehicle caused directly by the impact. Other types of coverage, like comprehensive insurance, address situations such as vandalism, theft, or damages from natural disasters, but those are not the focus of collision coverage. Therefore, the correct answer accurately reflects the purpose of collision coverage in an insurance policy.