Certified Travel Associate Practice

What is the purpose of Collision Loss/Damage Insurance?

1. Reimburses expenses due to theft, damage, or loss of property

2. Covers rental cars

3. Reimburses expenses for delayed baggage

4. Provides cash payment for loss of life or limb

The correct answer is: Covers rental cars

Collision Loss/Damage Insurance primarily focuses on providing coverage specifically for rental vehicles. When renting a car, this type of insurance protects against financial liabilities arising from accidents or damage to the rental car itself. It typically covers costs associated with repairs or replacement of the vehicle if it is involved in a collision, which is crucial for travelers who want peace of mind while driving a rental vehicle. The other options describe different types of insurance or coverage. Reimbursing expenses due to theft, damage, or loss of property relates more to general personal property insurance. Delayed baggage reimbursement is aimed at compensating travelers for inconvenience caused by luggage issues, and cash payment for loss of life or limb falls under personal accident insurance, none of which pertain directly to collision damage while using a rental vehicle.