Which type of auto coverage would typically cover damage to a third-party vehicle?

The correct answer involves collision coverage. This type of insurance is designed to cover damage to your vehicle resulting from a collision with another vehicle or object, as well as damage you may cause to another party’s vehicle in an accident.

When a driver is found liable for an accident that results in damage to a third-party vehicle, collision coverage may help pay for repairs to that vehicle up to the limits of the policy. It’s important to note that this coverage applies specifically when accidents involve your vehicle, regardless of fault, which also stems from the intent to protect the policyholder's financial responsibility.

While bodily injury liability focuses on medical expenses and lost wages for third parties injured in the accident, comprehensive coverage protects against non-collision-related incidents like theft or weather damage. Personal injury protection, on the other hand, assists with medical bills for the insured driver and passengers after an accident, rather than property damage to others.