Alabama Insurance Adjuster Practice Exam

Which part of an Auto Insurance Policy would pay for repairs after an accident caused by D'Anton spilling coffee in his lap?

1. Property Damage Liability

2. Personal Injury Protection

3. Collision Coverage

4. Comprehensive Coverage

The correct answer is: Collision Coverage

Collision coverage is specifically designed to cover damages to a policyholder's own vehicle resulting from an accident, regardless of fault. In the scenario where D'Anton spills coffee in his lap, causing him to lose control and crash, the repairs needed for his vehicle would fall under collision coverage. This type of coverage pays for the cost of repairing or replacing the insured vehicle after it collides with another vehicle or object. Property damage liability, on the other hand, would apply if D'Anton caused damage to someone else's property during the incident. Personal injury protection is focused on covering medical expenses for injuries sustained by the driver and passengers, rather than vehicle repairs. Comprehensive coverage provides protection against non-collision-related incidents, such as theft or natural disasters, but does not apply in this context where a collision is explicitly the cause of damage. Therefore, for vehicle repairs after an accident like the one described, collision coverage is the appropriate part of the auto insurance policy.