State Farm Insurance License Practice Exam

Which of the following statements about collision coverage is true?

1. It covers damages from events such as theft.

2. It includes damages from hitting an animal.

3. It provides coverage for personal injury claims.

4. It only applies when another vehicle is involved.

The correct answer is: It includes damages from hitting an animal.

Collision coverage is a type of auto insurance that specifically helps cover the costs associated with repairing or replacing your vehicle following a collision, regardless of who is at fault. This coverage is particularly pertinent when it comes to incidents that result in damage to your car due to a collision with another vehicle or with an object, which includes hitting an animal. When considering the characteristics of collision coverage, it's essential to note that while it addresses damages caused by striking an animal, it does not extend to activities like theft (which would typically fall under comprehensive coverage), or personal injury claims (which would relate to liability coverage). Additionally, collision coverage is not solely limited to scenarios involving other vehicles; it also applies in situations where your vehicle collides with other objects or encounters accidents like hitting a deer. In summary, the truth behind the correct answer lies in understanding that collision coverage is comprehensive enough to include damages from hitting animals, showcasing its broad utility in a variety of collision scenarios.