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14 September, 11:56

John has a new truck that he likes to show off by driving fast sometimes. On one occasion, John lost control of the truck and struck a mailbox and a tree in a residential yard. There was $150.00 damage to the mailbox, $500.00 damage to the tree and $3000.00 damage to John's truck. What coverage in John's automobile policy would cover these damages? Be specific.

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  1. 14 September, 15:26
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    Damage to the tree as well as to mailbox will be covered under the John' s property damage coverage whereas the damage to the truck will be covered under the Collision coverage section.

    Explanation:

    Property damage coverage is the liability coverage which is a part of a car insurance policy. It pays to the repair, damage the person cause to another person's property. In this case, it pays for the mailbox and trees damage.

    Collision coverage or insurance is a coverage that pays to repair or replace the car which got damaged in an accident. In this case, the truck damage will be covered under this.
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