Texas Property and Casualty License Practice Exam

Which of the following is considered an exclusion under collision coverage?

1. Mechanical breakdown

2. Overturned vehicle

3. Collision with an object

4. Upset of the vehicle

The correct answer is: Mechanical breakdown

Collision coverage is designed to pay for damage to your vehicle resulting from a collision with another vehicle or object, regardless of fault. This coverage includes various scenarios but also has exclusions that are important to understand. Mechanical breakdown is an exclusion under collision coverage because it refers to damage that occurs due to wear and tear, defect, or breakdown of the vehicle's mechanical parts, rather than an accident. Collision coverage specifically excludes payments for damages that result from these kinds of mechanical failures. This means that if your car were to break down mechanically and subsequently cause an accident, collision coverage would not cover the costs associated with that damage. The other options, such as overturned vehicle, collision with an object, and upset of the vehicle, typically fall under collision coverage, meaning they would usually be covered provided they meet the conditions of a collision event. Understanding these distinctions helps ensure that you have the right type of coverage for the various risks associated with driving.