Which coverage helps pay for damage caused to your vehicle in an accident?

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Prepare for the EverFi Financial Literacy for High School Test. Utilize flashcards and multiple-choice questions with detailed explanations and hints. Enhance your financial literacy skills and get exam-ready!

Collision insurance specifically covers damage to your vehicle resulting from a car accident, regardless of who is at fault. This type of insurance is designed to help you pay for repairs or replacement of your car, enabling you to get back on the road after an incident. Unlike comprehensive insurance, which covers non-collision events such as theft, vandalism, or natural disasters, collision insurance is focused solely on accidents involving other vehicles or stationary objects.

The other options, such as "comprehensive insurance," "check," or "checking account," do not address the coverage required for vehicle damage in an accident. Comprehensive insurance caters to different types of risks that do not arise from a collision, whereas a check or checking account does not provide any type of insurance coverage.

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