IBABC Automobile Insurance Practice Exam 2025 – All-in-One Study Resource

Own Damage optional coverage typically consists of three primary components: Collision, Specified Perils, and Comprehensive coverage. Each of these components plays a significant role in protecting the insured's vehicle against different types of damage.

Collision coverage is designed to protect against damage resulting from a collision with another vehicle or object, making it essential for those who frequently drive or are at risk of accidents.

Specified Perils coverage includes a limited set of risks that are explicitly listed in the policy, such as fire, theft, and certain weather conditions. This allows policyholders to have coverage for specific risks they might be concerned about.

Comprehensive coverage protects against a variety of risks not covered by collision, such as vandalism, natural disasters, and falling objects, providing broader protection for the vehicle.

In contrast, a Deductible Waiver is not considered a component of Own Damage coverage itself. Instead, it is a benefit that may apply to certain types of claims, reducing the amount the insured must pay out-of-pocket when a claim is made. Therefore, while deductibles are often part of the discussion around insurance policies, the Deductible Waiver does not fall under the Own Damage coverage components. This distinction helps clarify why the Deductible Waiver is not included in