Certified Travel Associate Practice

Which insurance policy covers rental cars mainly?

1. Baggage Loss

2. Collision Loss/Damage Insurance

3. Medical/Dental Expenses

4. Trip Cancellation/Interruption

The correct answer is: Collision Loss/Damage Insurance

The correct option is Collision Loss/Damage Insurance because this specific policy is designed to protect customers against financial losses that may arise from damage to or theft of a rental vehicle. When someone rents a car, there is a potential risk of accidents or other incidents that could lead to costly repairs or replacement. Collision Loss/Damage Insurance typically covers these expenses, ensuring that the individual is not financially burdened in the event of an accident while using the rental car. The other types of insurance mentioned serve different purposes unrelated to the coverage of rental vehicles. Baggage Loss insurance focuses on protecting personal belongings during travel, which is not relevant to rental cars. Medical/Dental Expenses insurance is intended for health-related issues incurred while traveling, and Trip Cancellation/Interruption insurance provides coverage for financial losses due to canceled or interrupted travel plans. Each of these policies serves a distinct need that does not directly address the risks associated with renting and operating a vehicle.