16
QuizMultiple Choice

Auto Insurance

Question 16 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

While driving recklessly, Thomas lost control of his car and accidentally drove it into the water fountain in his neighbor’s front yard. Thomas is fully insured through his insurance company. Which of the following components of his insurance policy will cover the damage he caused to his neighbors fountain?

Answer
A
bodily injury
B
property damage
C
collision
D
comprehensive damage

Explanation

Property damage liability coverage pays for damage you cause to someone else’s property. Thomas damaged his neighbor’s fountain, so this coverage applies. Collision coverage generally pays for damage to Thomas’s own car, while bodily injury covers injuries to people.

AI-written and checked against the verified answer.

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