Question

Jenny purchased a Personal Auto Policy (PAP) that included property damage liability, collision coverage, medical payments coverage, and other-than-collision coverage. Jenny had too much alcohol to drink at a graduation party. While driving home from the party, Jenny ran off the road and hit a tree. Police responded to the accident, and Jenny was arrested for driving under the influence of alcohol. Which of the following statements is true regarding the damage to Jenny's car?

A) Damage to the car is covered under Jenny's property damage liability coverage.
B) Damage to the car is covered under Jenny's collision coverage.
C) Damage to the car is covered under Jenny's other-than-collision loss coverage.
D) There is no coverage as Jenny was intoxicated at the time of the accident.

Answer 1

The damage to Jenny's car would be covered under her collision coverage. However, her insurance provider may have the right to deny the claim if the accident was due to driving under the influence of alcohol.

Step-by-step explanation:

The question relates to the coverage provided by Jenny's Personal Auto Policy (PAP) following an incident where she was driving under the influence of alcohol. The correct answer to which coverage applies is her collision coverage. Property damage liability does not cover the driver’s own vehicle but rather the damage they may cause to others' property. Other-than-collision loss coverage, also known as comprehensive coverage, generally covers events that are not covered by collision, such as theft or natural disasters. It is important to note that while collision coverage will typically cover the damage to Jenny's car, her insurance company may have a clause that allows them to deny coverage if the accident was due to driving under the influence.