Rhode Island Insurance Adjuster Exam

Which type of coverage is needed if a vehicle is stolen?

1. Liability coverage

2. Comprehensive coverage

3. Collision coverage

4. Uninsured motorist coverage

The correct answer is: Comprehensive coverage

Comprehensive coverage is specifically designed to protect a vehicle against a variety of risks that are not related to a collision with another vehicle. This includes theft, vandalism, natural disasters, or damage caused by animals. When a vehicle is stolen, comprehensive coverage would provide the necessary financial compensation to the policyholder based on the value of the stolen vehicle, minus any deductible that may apply. In contrast, liability coverage primarily helps cover damages caused to other parties in an accident where the insured is at fault, thus it would not cover theft of the insured's own vehicle. Collision coverage caters to damages resulting from an accident involving another vehicle or object and is not applicable in theft situations. Uninsured motorist coverage protects against damages caused by a driver who does not have insurance, which similarly does not pertain to theft. Therefore, comprehensive coverage is the essential type of insurance for scenarios involving vehicle theft.