Registered Insurance Brokers of Ontario (RIBO) Practice Exam

The correct answer, which pertains to collision coverage, is based on the nature of the damage incurred in this scenario. Collision coverage is specifically designed to protect the insured's vehicle against damages that arise from a collision, regardless of who is at fault. In this case, the insured’s automobile has been damaged by another vehicle while parked, which is a typical situation handled by collision coverage.

This type of coverage includes damages resulting from accidents involving other vehicles as well as stationary objects, addressing the costs of repairs necessary to restore the vehicle to its pre-accident condition. The insured would file a claim under their collision coverage to cover the repair expenses associated with the damage inflicted by the other vehicle.

The other options do not apply in this situation: comprehensive coverage typically covers non-collision-related incidents like theft or weather damage, the Family Protection Endorsement addresses underinsurance or uninsured vehicle situations relative to personal injury claims, and liability coverage protects the insured against claims made by others for damage or injury caused by the insured, not for their own vehicle damages.