Questions: What type of car insurance would you need to use if you damaged part of your neighbor's house in a car accident? Select a response. - Comprehensive insurance - Bodily injury liability - Property damage liability - Collision insurance

What type of car insurance would you need to use if you damaged part of your neighbor's house in a car accident?

Select a response.
- Comprehensive insurance
- Bodily injury liability
- Property damage liability
- Collision insurance
Transcript text: 11:45 74 TRUIST $\square^{6}$ EVERFI: Financial Literacy* for High School Quiz Question 4 of 6 What type of car insurance would you need to use if you damaged part of your neighbor's house in a car accident? Select a response. Comprehensive insurance Bodily injury liability Property damage liability Collision insurance Submit Continue Back Next $\rightarrow$ platform.everfi.net
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Solution

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Answer

The answer is Property damage liability.

Explanation
Option 1: Comprehensive insurance

Comprehensive insurance covers damage to your own vehicle from non-collision events such as theft, vandalism, or natural disasters. It does not cover damage to other people's property.

Option 2: Bodily injury liability

Bodily injury liability covers medical expenses and lost wages for other people injured in an accident where you are at fault. It does not cover property damage.

Option 3: Property damage liability

Property damage liability covers the cost of damage you cause to someone else's property in an accident. This includes damage to vehicles, buildings, and other structures, such as your neighbor's house.

Option 4: Collision insurance

Collision insurance covers damage to your own vehicle resulting from a collision with another vehicle or object. It does not cover damage to other people's property.

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