Illinois Casualty Insurance State Practice Exam

What is the scope of Comprehensive (All-Risk) Coverage?

1. Covers only specified types of damage

2. Covers all forms of damage to insured auto except those excluded

3. Covers only theft from the insured vehicle

4. Covers only damage due to natural disasters

The correct answer is: Covers all forms of damage to insured auto except those excluded

Comprehensive (All-Risk) Coverage offers a broad level of protection for your vehicle by covering a wide array of potential damages that could occur, barring certain exclusions specified in the policy. This means it applies to damage from a variety of incidents, such as theft, vandalism, fire, and natural disasters, providing extensive coverage for situations that may not be covered under more limited types of auto insurance. This type of coverage is particularly advantageous because it does not limit the protection to only specific incidents or types of damages; instead, it encompasses all forms of damage that might happen to an insured auto unless explicitly excluded in the policy details. Therefore, while some forms of damage may not be covered, the overall scope of Comprehensive Coverage is extensive and designed to provide policyholders with peace of mind regarding many potential risks. This comprehensive nature is what makes this answer the best fit among the available options.