Auto Physical Damage
Practice questions on auto physical damage for the casualty exam, each with an answer and explanation.
Loading practice test... If it does not open, reload this page.
Study questions and answers
Try each question first, then tap to check your answer.
1. Under the personal auto policy, which of the following losses is paid under collision coverage rather than other than collision coverage?
- Hitting a deer
- Upset of the auto
- Hail damage
- Windshield breakage from a falling tree limb
Show answer
Collision means upset of the auto or its impact with another vehicle or object. Contact with a bird or animal is listed under other than collision.
2. An insured's windshield is cracked by a flying stone while driving on the highway. Under the personal auto policy, this loss is:
- Excluded entirely
- Covered only as collision
- Covered under other than collision, though the insured may choose to have glass breakage caused by a collision paid as collision
- Covered under liability
Show answer
Missiles or falling objects and glass breakage are listed under other than collision. If glass breaks in a collision, the insured can choose to have it treated as collision.
3. Which of the following losses is excluded under Part D (Coverage for Damage to Your Auto) of the personal auto policy?
- Theft of the covered auto
- Fire damage to the covered auto
- Collision with another car
- Tire damage caused by wear and tear or road damage alone
Show answer
Part D excludes damage due and confined to wear and tear, freezing, mechanical or electrical breakdown, and road damage to tires. Tire damage that comes with other covered damage, such as theft of the whole car, is covered.
4. After the covered auto is stolen, transportation expenses under the 2018 personal auto policy begin to be paid:
- Immediately
- 24 hours after the theft
- 48 hours after the theft
- 7 days after the theft
Show answer
For theft of the whole vehicle, transportation expenses start 48 hours after the theft. For other covered losses, they start when the auto has been out of use for more than 24 hours.
5. Under the 2018 edition of the personal auto policy, transportation expenses are paid up to what amount?
- $30 per day, up to $900
- $20 per day, up to $600
- $50 per day, up to $1,500
- $15 per day, up to $450
Show answer
The 2018 PAP raised transportation expenses to $30 per day with a $900 maximum, and no deductible applies. Older editions paid $20 per day up to $600.
6. Under Part D of the personal auto policy, the insurer will pay for a loss to the covered auto in an amount equal to the lesser of:
- The stated value or the purchase price
- Actual cash value or the amount necessary to repair or replace the property with like kind and quality, less the deductible
- Replacement cost new or the loan balance
- The market value of the car or the policy limit for liability
Show answer
Part D pays the lesser of actual cash value or the cost to repair or replace with property of like kind and quality, minus any deductible.
7. An insured rents a car for a weekend trip. If the insured's personal auto policy includes collision coverage on at least one auto, how does the policy treat physical damage to the rental car?
- It is excluded
- It is covered only for theft
- It is covered only if the rental company's damage waiver is declined and the insured pays a surcharge
- It is covered as a non-owned auto, subject to the broadest Part D coverage shown for any covered auto
Show answer
A non-owned auto, including a rental car used by the insured, gets the broadest Part D coverage applicable to any covered auto shown in the declarations.
8. Under the personal auto policy, physical damage coverage for a non-owned trailer is limited to:
- $500
- $1,000
- $1,500
- $5,000
Show answer
The PAP limits Part D coverage on a non-owned trailer to $1,500.
9. An insured buys an additional car, and no auto currently on the policy has collision or other than collision coverage. Under the personal auto policy, how long does the insured have to ask for physical damage coverage on the new car?
- 4 days, with a $500 deductible applying to any loss before the request
- 14 days, with no deductible
- 30 days, with a $250 deductible
- No time at all, because coverage cannot be added mid-term
Show answer
When no auto on the policy has Part D coverage, the insured must ask within 4 days, and a $500 deductible applies to a loss that happened before the request.
10. An insured keeps several items in the covered auto. Which item would NOT be covered by the personal auto policy physical damage coverage if the car were broken into?
- A factory-installed radio
- Equipment designed to detect radar or laser
- The spare tire stored in the trunk
- A permanently installed navigation system in the auto
Show answer
Part D excludes electronic equipment designed to detect radar or laser. Permanently installed sound and navigation equipment is generally covered.
11. An insured's car is damaged in a collision caused by another driver. The insured's insurer pays for the repairs under collision coverage. The insurer's right to recover that payment from the at-fault driver is called:
- Subrogation
- Arbitration
- Appraisal
- Contribution
Show answer
Subrogation lets the insurer step into the insured's place and pursue the at-fault party for the amount it paid.
12. When the insured and the insurer disagree on the amount of a physical damage loss under the personal auto policy, either may demand:
- Arbitration by the state insurance department
- A jury trial before any payment
- Appraisal, in which each party selects an appraiser and the two appraisers select an umpire
- Mediation by the agent
Show answer
Under the appraisal provision, each side picks an appraiser, the appraisers pick an umpire, and a decision agreed to by any two is binding as to the amount of loss.