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QuizMultiple Choice

Auto Insurance

Question 1 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Julien was involved in an accident in which he merged into another car, damaging the front fender of the other car. Julien is fully insured through his insurance company. Which component of Julien’s insurance plan will cover the damage he caused to the other car?

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

Explanation

Property damage liability covers damage you cause to someone else’s vehicle or other property. Since Julien damaged the other car’s front fender, the property damage component of his insurance applies. Bodily injury covers harm to people, while collision and comprehensive generally cover damage to Julien’s own vehicle.

AI-written and checked against the verified answer.

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