United States
Hong KongTexas Personal Lines Auto Physical Damage Practice Questions
These original questions apply collision and other-than-collision auto coverage to theft, hail, impact, deductibles, and loss settlement.
- Collision generally addresses upset or impact with another vehicle or object; other-than-collision covers specified noncollision causes such as theft, fire, and hail.
- The policy definition, deductible, vehicle value, and endorsements control the final claim result.
On this page7 sections
- Question 1: A single-car crash with a guardrail
- Question 2: Hail damages a parked car
- Question 3: Theft followed by delayed recovery
- Question 4: Flood damages a parked vehicle
- Question 5: Total loss and actual cash value
- Question 6: Collision deductible versus liability claim
- Check every physical-damage fact
Auto physical-damage coverage protects the insured vehicle when the policyholder purchases the relevant protection. Liability is a different coverage: it addresses covered legal responsibility to others. These original scenarios practice first-party loss classification and settlement. They are not copied from Pearson’s live exam. Because policy terms vary, each stem states the needed definition or assumption where a carrier-specific term could change the answer.
- Collision
- Commonly covers direct accidental loss from upset or impact with another vehicle or object, subject to terms
- Other-than-collision
- Commonly covers theft, fire, hail, flood, falling objects, and other listed causes
- Deductible
- The insured bears the applicable amount; different physical-damage coverages may have separate deductibles
- Loss settlement
- Repair, actual cash value, replacement, and total-loss provisions depend on policy wording and law
- Transportation expense
- May be included after specified covered theft or added by endorsement; check terms and waiting period
- Scope
- Coverage is optional in many personal auto arrangements; verify declarations and covered auto
| Loss event | Likely coverage category | Key fact to verify |
|---|---|---|
| Car hits a pole | Collision | Impact with object; deductible and covered auto |
| Hail dents roof | Other-than-collision | Comprehensive-type grant, deductible, and valuation |
| Car is stolen | Other-than-collision | Theft coverage, waiting period, recovery, limits/ACV |
| Flooded parked car | Other-than-collision | Water cause, deductible, actual cash value |
| Vehicle upset without contact | Collision in common wording | Policy definition includes upset |
| Rental after covered accident | Transportation expense or endorsement | Trigger, daily and total caps, waiting period |
Question 1: A single-car crash with a guardrail
An insured swerves to avoid debris, loses control, and strikes a guardrail. The policy has collision coverage with a $1,000 deductible. The covered repair estimate is $5,400, and no other limitation applies. What coverage and approximate payment analysis is best?
| Choice | Reasoning |
|---|---|
| A. Collision; approximately $4,400 before any other policy adjustments. | Correct. The car impacted an object, matching common collision wording. Subtract the $1,000 deductible from the covered $5,400 estimate. |
| B. Other-than-collision; pay the full $5,400 because no other car was involved. | Incorrect. Collision can include impact with an object, not only a crash with another auto. The stated deductible applies. |
| C. Liability PD; pay the repair cost because a guardrail belongs to the public. | Incorrect. The insured’s own vehicle damage is first-party physical damage. Liability PD could apply to damage to the guardrail if the insured is legally responsible, but not to repair the insured’s car. |
| D. UM property damage; pay after the insured swerved. | Incorrect. The scenario does not involve an uninsured motorist causing the loss. Evasive action alone does not trigger UM coverage. |
A single-vehicle event can still be collision. Do not use ‘another vehicle’ as the only test. If the insured also damaged the guardrail, that would be a separate third-party property damage claim. The physical damage deductible applies to the insured’s car, while liability has its own limits and no deductible in the typical form.
Question 2: Hail damages a parked car
A parked car is dented by hail during a Texas storm. It was not moving or colliding with an object. The owner has other-than-collision coverage with a $500 deductible, and the covered damage is valued at $2,300. What is the best answer?
| Choice | Reasoning |
|---|---|
| A. Other-than-collision coverage may apply, with about $1,800 payable before other adjustments. | Correct. Hail is a common other-than-collision peril. Deduct the stated $500 from the covered amount. |
| B. Collision applies because the hail collided with the car. | Incorrect. The policy classifies hail as an other-than-collision cause; the ordinary-language word ‘collide’ does not change the coverage definition. |
| C. Liability BI applies because the storm injured the vehicle. | Incorrect. No person’s bodily injury or legal claim is described. The insured’s own car needs physical-damage coverage. |
| D. No policy can cover hail damage to autos in Texas. | Incorrect. Other-than-collision coverage commonly addresses hail, although the insured must have purchased it and the policy terms control. |
Use the contract’s category rather than a dictionary meaning. ‘Collision’ has a policy definition; hail striking a parked car is commonly covered under other-than-collision. TDI identifies comprehensive/other-than-collision as covering vehicle loss from hail, flood, theft, fire, vandalism, and similar causes. Confirm the form and deductible for a real loss.
Question 3: Theft followed by delayed recovery
A covered auto is stolen. The policy includes other-than-collision coverage and an express transportation-expense benefit after theft, subject to a 48-hour waiting period, $35 per day, and $900 total. The vehicle is not recovered for 20 days. What is the maximum benefit indicated by the stated terms?
| Choice | Reasoning |
|---|---|
| A. $900, subject to proof and all policy conditions. | Incorrect. Although the total cap is $900, the 48-hour wait leaves only 18 eligible days, and 18 × $35 is $630. |
| B. $630, subject to proof and all policy conditions. | Correct. Exclude the first 48 hours, multiply the 18 remaining eligible days by the $35 daily cap, then compare the result with the $900 total cap. |
| C. Unlimited rental cost because the car was stolen. | Incorrect. The stated daily and total limits apply. A covered theft does not erase benefit caps. |
| D. No transportation benefit because the car was not in a collision. | Incorrect. The policy expressly provides a transportation-expense benefit after theft, which is an other-than-collision loss in the scenario. |
The calculation is: 20 days less a 2-day waiting period leaves 18 eligible days. At $35 per day, the maximum is $630, which is below the $900 total cap. In practice, confirm how the contract counts the waiting period, whether partial days count, and when the theft benefit starts. A rental-reimbursement endorsement can have different language.
Question 4: Flood damages a parked vehicle
A flash flood submerges a parked insured auto. The owner carries collision but has not purchased other-than-collision coverage. Which answer is strongest?
| Choice | Reasoning |
|---|---|
| A. Collision pays because the vehicle was involved in an impact with water. | Incorrect. Flood damage is commonly categorized as other-than-collision; water hitting a parked vehicle does not create a collision under the form. |
| B. Collision alone generally does not cover flood damage; other-than-collision would ordinarily be the relevant purchased coverage. | Correct. TDI lists flood among causes covered by comprehensive/other-than-collision auto coverage. The owner lacks that coverage in the facts. |
| C. Auto liability pays because public water caused damage. | Incorrect. Liability addresses legal responsibility to others, not direct damage to the insured’s car. |
| D. UM property damage pays because the source was unknown. | Incorrect. A natural flood is not an uninsured or underinsured motor vehicle. Unknown source does not convert it into UM loss. |
The most important step is to identify whether the insured bought the relevant physical-damage coverage. The car can be valuable and the loss sudden, but that does not add coverage. A separate deductible would normally apply under other-than-collision if purchased. Review any flood, water, or catastrophic-loss wording in the actual auto contract.
Question 5: Total loss and actual cash value
A covered collision totals an insured vehicle. The policy’s loss-settlement clause promises actual cash value at the time of loss, less the deductible and any applicable salvage or lien handling. The insured argues the insurer must pay the original purchase price from three years earlier. Which answer is best?
| Choice | Reasoning |
|---|---|
| A. Apply the stated actual-cash-value term and deductible; purchase price alone does not set payment. | Correct. Actual cash value concerns value at the time of loss under the contract and applicable valuation rules. |
| B. Pay original purchase price automatically because replacement cost is always required. | Incorrect. The question states ACV settlement. No fact establishes a replacement-cost endorsement or statutory rule overriding it. |
| C. Pay the collision limit, which is always the full value of any vehicle. | Incorrect. A stated liability limit is not relevant, and physical-damage settlement can be subject to actual value and policy limits. |
| D. Deny because total losses are not physical damage claims. | Incorrect. A covered auto that is damaged beyond the insurer’s repair threshold may be settled as a total loss under the physical-damage provision. |
Do not confuse the cost to replace a new vehicle with its market value at the date of loss. Auto policies commonly use ACV for a total loss, but new-car replacement or loan/lease gap protection may change a specific outcome. Check the declaration, endorsements, valuation method, tax/title treatment, lienholder, and deductible before calculating a real claim.
Question 6: Collision deductible versus liability claim
A driver is not at fault in a crash, but the other driver’s insurer has not accepted liability. The insured has collision coverage with a $750 deductible. The insured reports the damage to their own insurer. Which statement is most accurate?
| Choice | Reasoning |
|---|---|
| A. The insured may use collision coverage, subject to the deductible; the insurer may pursue recovery later under its rights. | Correct. First-party collision can provide a claim path without waiting for the other carrier’s liability decision. The deductible applies, and subrogation may later recover it. |
| B. Collision is unavailable until the other insurer admits fault. | Incorrect. The insured’s own collision agreement is separate from the other driver’s liability investigation. |
| C. The insured must use UM even though the other driver is insured. | Incorrect. UM/UIM depends on statutory and policy definitions of uninsured or underinsured motorist status, not merely a delayed liability decision. |
| D. No deductible applies because the insured says they were not at fault. | Incorrect. A first-party collision deductible generally applies under the policy even when the insured disputes fault; recovery may later reimburse it depending on outcome. |
This scenario tests claim path and recovery. Collision is a contract between the insured and their insurer; liability is a separate claim against the allegedly at-fault driver and insurer. The insured should cooperate, preserve evidence, and ask how the deductible may be handled if the insurer recovers from the responsible party.
Check every physical-damage fact
Before answering, confirm the covered auto, whether the coverage was purchased, cause of loss, deductible, limit or settlement basis, and any endorsement. Transportation benefits deserve their own careful read: an ordinary policy benefit can have a waiting period and caps, while a rental-reimbursement endorsement may have a different trigger and limit. Do not assume a rental car is automatically covered for every inconvenience.
TDI’s auto guide gives broad examples of collision, comprehensive/other-than-collision, deductibles, and limits. Those examples help with the exam but do not replace a carrier’s declarations and wording. Pearson’s current outline describes test scope, and policy contracts determine actual payment. In practice questions, follow assumptions and calculate only from figures supplied.
For a theft claim, determine whether the policy has other-than-collision coverage and whether the event fits theft rather than voluntary parting, conversion, or an excluded use. If the vehicle is recovered with damage, the policy may address repair, diminished value, personal items inside the car, and transportation expense separately. A broad label such as “theft claim” does not mean every missing item is insured under the auto policy; homeowners or renters coverage may be relevant to contents.
For a total loss, separate the amount-of-loss question from coverage. Establish that the loss is covered, determine the valuation method and relevant market information, apply the deductible, and identify any lienholder or salvage choice. ACV is not simply the unpaid loan balance or original sticker price. A gap contract may cover some loan shortfall under its own terms, but it is not a substitute for physical damage coverage and may exclude amounts such as overdue payments or add-ons.
TDI’s auto guide says collision and comprehensive claims have deductibles and that collision/comprehensive do not have dollar limits in the same way liability or rental coverages do. That does not mean the insurer pays unlimited money: vehicle value and loss-settlement terms constrain a total-loss payment. The distinction is between a stated coverage limit and a valuation of the damaged auto. Use this vocabulary precisely on exam questions.
When a question includes waiting periods and daily caps, calculate eligible days before selecting an option. If your result does not match any choice, recheck the math, waiting-period convention, and policy wording before assuming your understanding is wrong. This is especially useful for transportation benefits, where a coverage trigger and a daily or total cap can operate together.
Common questions
Are collision and other-than-collision the same coverage?
No. Collision commonly addresses upset or impact with another vehicle or object. Other-than-collision commonly addresses losses such as theft, hail, fire, vandalism, and flood. Policy definitions and exclusions control. The stated form and deductible determine the actual payment.
Does collision cover flood damage to a parked car?
Usually flood is an other-than-collision peril, not collision. The insured generally needs to have purchased that coverage, and the actual policy wording applies. Check the declarations for the purchased physical-damage coverage and deductible.
Is rental reimbursement always part of auto physical damage?
No. Some forms provide limited transportation expense after certain losses, while rental reimbursement may be an optional endorsement with separate terms. Check the trigger, waiting period, daily cap, and total limit.
Does a collision deductible disappear if the other driver is at fault?
Not necessarily when you claim under your own collision coverage. Your insurer may later seek recovery from the responsible party, and deductible reimbursement depends on recovery and policy handling. Always apply the contract’s definition and settlement terms.