Registered Insurance Brokers of Ontario (RIBO) Practice Exam

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Prepare for the Registered Insurance Brokers of Ontario Test. Study with comprehensive flashcards and multiple choice questions, each question provides hints and detailed explanations. Ace your exam with confidence!

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Practice this question and more.

Which of the following statements about collision coverage is true?

It is mandatory for all drivers
It helps cover damages to your vehicle from a collision
It only applies to vehicles over a certain age
It covers only vandalism-related damages

The correct answer is: It helps cover damages to your vehicle from a collision

The statement regarding collision coverage that is accurate states that it helps cover damages to your vehicle from a collision. This type of insurance specifically addresses costs related to repairing or replacing your vehicle if it is damaged as a result of an accident, regardless of who is at fault. This is crucial for car owners as it provides financial protection against repair bills that can be significant after a collision. Other statements do not accurately reflect the nature of collision coverage. For instance, it is not universally mandatory for all drivers, as it can depend on individual circumstances and lender requirements. Also, collision coverage applies to vehicles regardless of their age, disputing the notion that it only applies to newer vehicles. Lastly, it does not cover vandalism-related damages, as this type of damage is typically covered under a different type of insurance called comprehensive coverage.