Which of the following is NOT one of the two compulsory coverages in automobile insurance?

Prepare for the IBABC Automobile Insurance Exam with our multiple choice questions with explanations and hints. Study effectively with our engaging quizzes and ensure you're exam-ready!

In the context of automobile insurance, there are two compulsory coverages required by law in many jurisdictions, which are Third Party Liability and Accident Benefits. Third Party Liability covers damages or injuries that the insured might cause to another person or their property while Operating a vehicle. Accident Benefits provide coverage for the insured's own medical expenses and other related costs in the event of an accident, regardless of fault.

Comprehensive Coverage and Collision Coverage, while valuable, are considered optional coverages rather than compulsory. Comprehensive Coverage protects against losses due to events other than collisions, such as theft, vandalism, or natural disasters. Collision Coverage, on the other hand, is designed to cover damages to the insured's vehicle resulting from a collision, regardless of who is at fault.

Thus, the choice of Comprehensive Coverage is correct in this context because it does not fall under the mandatory coverage categories required for automobile insurance policies.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy