Mississippi Property & Casualty Practice Exam

What does Part D of the Personal Auto Policy provide?

1. Medical payments

2. Liability coverage

3. Coverage for damages

4. PIP coverage

The correct answer is: Coverage for damages

Part D of the Personal Auto Policy specifically provides coverage for damages to the insured vehicle. This section typically includes two main types of coverage: collision and comprehensive. Collision coverage pays for damage to the insured vehicle resulting from a collision with another vehicle or object, while comprehensive coverage addresses damages resulting from non-collision incidents, such as theft, vandalism, or weather-related events. This part of the policy ensures that the insured has financial protection for their vehicle against various risks that could lead to physical damage, thus helping to cover repair costs or provide a payout in case of a total loss. Other areas of the Personal Auto Policy serve different purposes, such as liability coverage, which protects against claims made by others for bodily injury or property damage, and medical payments or personal injury protection (PIP), which cover medical expenses for injuries sustained in an automobile accident. However, these do not fall under Part D, which is solely focused on the insured’s vehicle.