Alabama Insurance Adjuster Practice Exam

What coverage does Roxanne's auto policy include regarding damages caused by her?

1. Comprehensive coverage

2. Liability coverage only

3. Collision coverage with a $500 deductible

4. Both liability and collision coverage

The correct answer is: Both liability and collision coverage

Roxanne's auto policy includes both liability and collision coverage, which provides her with a well-rounded protection plan for different types of damages. Liability coverage is essential as it protects her financially if she is found to be at fault in an accident that causes damage to another person's property or injuries to another individual. This type of coverage ensures that she is not personally responsible for substantial costs that could arise from such situations. Collision coverage, on the other hand, allows Roxanne to claim damages to her own vehicle resulting from an accident, regardless of who was at fault. This means that if she were to get into an accident, her insurance would cover the cost of repairs to her vehicle after applying the deductible, which in this case is $500. Having both liability and collision coverage means she is comprehensively protected against a variety of incidents that can occur while driving, ensuring peace of mind and financial security.