Rhode Island Insurance Adjuster Exam

Which of the following is included in a personal automobile policy?

1. Damage to tires from wear and tear

2. Electrical fire damages

3. Road damage to stolen vehicles

4. Freezing in the radiator

The correct answer is: Electrical fire damages

A personal automobile policy typically covers a range of damages and incidents related to the insured vehicle. The correct choice, which includes damage from electrical fires, is considered valid because standard policies often cover damage resulting from theft, vandalism, or fire, including fires caused by electrical issues. In contrast, damage stemming from wear and tear, such as tire degradation, is generally not covered by this type of policy as they are considered part of normal usage rather than sudden incidents. Similarly, road damage to a stolen vehicle wouldn’t be covered since the vehicle is no longer in the insured’s possession, and any claims related to that would fall outside of the policy’s protections. Freezing damage to the radiator could be excluded as well, as it often results from neglect or lack of maintenance, which is something personal automobile policies do not typically insure against. This illustrates the distinction between covered perils that involve sudden and accidental loss versus those tied to ongoing wear or lack of care.