New York Life, Accident, and Health Practice Test

Collision insurance is a specific type of automobile insurance that covers damages to a vehicle resulting from a collision with another vehicle or object, regardless of who is at fault. It is designed to help car owners repair or replace their vehicles when they are involved in accidents. This type of coverage typically covers costs related to vehicle damage after a collision, ensuring that drivers are financially protected in these situations.

While comprehensive insurance provides coverage for non-collision-related incidents such as theft, vandalism, or natural disasters, and liability insurance protects against claims made by others for bodily injury or property damage, collision insurance specifically addresses damages from accidents. Property damage insurance, on the other hand, usually pertains to coverage for damage to someone else's property due to the insured's actions. Therefore, of all the options, automobile insurance is the most encompassing label under which collision insurance falls, clearly defining the risk of collision-related accidents.