Tony's vehicle is insured under Autoplan. He is involved in a not-at-fault accident in Alberta, and is prohibited from recovering his vehicle damages from the at-fault motorist or their insurer. Which Autoplan basic coverage will cover Tony's vehicle damage?

Rationale

Basic vehicle damage coverage will cover Tony's vehicle damage.

In Alberta, when a driver is involved in a not-at-fault accident, their own insurance policy can provide coverage for vehicle damages under basic vehicle damage coverage, even if they cannot claim from the at-fault party.

A (Inverse liability) YOUR ANSWER

Inverse liability is not a recognized coverage option under Autoplan. It typically pertains to situations where liability is disputed, but it does not provide any financial protection for vehicle damage in a not-at-fault accident scenario. Therefore, it does not apply to Tony's situation.

B (Third-party liability) YOUR ANSWER

Third-party liability coverage protects the insured from claims made by others for damages caused by the insured’s vehicle. However, it does not cover the insured’s own vehicle damages in an accident where they are not at fault. Thus, this option does not assist Tony with his vehicle damage.

C (Hit-and-run coverage) YOUR ANSWER

Hit-and-run coverage is specifically designed for incidents where the at-fault party cannot be identified or locatable. While it offers protection in certain scenarios, it is not applicable in Tony's case since he was involved in a not-at-fault accident with an identifiable at-fault motorist.

D (Basic vehicle damage coverage) CORRECT

Basic vehicle damage coverage is the correct choice as it specifically covers damages to the insured's vehicle resulting from collisions, regardless of fault. This coverage allows Tony to recover for his vehicle damages under his Autoplan policy.

Conclusion

In summary, basic vehicle damage coverage is essential for providing protection to insured individuals like Tony in not-at-fault accidents. While other coverage options exist, they either do not apply or are designed for different circumstances. This coverage ensures that Tony can repair his vehicle despite not being able to claim from the at-fault driver.

Tony's vehicle is insured under Autoplan. He is involved in a not-at-fault accident in Alberta, and is prohibited from recovering his vehicle damages from the at-fault motorist or their insurer. Which Autoplan basic coverage will cover Tony's vehicle damage?

Basic vehicle damage coverage will cover Tony's vehicle damage.

Related Questions

Related Quizzes

How familiar were you with this question?

Report an Issue

Rate this Practice Test