What type of insurance covers the damage that is caused to other vehicles?
- Directors insurance.
- Correct answer: Third party insurance.
- Fire insurance.
- Obligatory insurance.
Why this is the answer
The correct answer in the official bank: Third party insurance.
Third party insurance covers damage you cause to other people's property, such as another vehicle hit in an accident. Obligatory (compulsory) insurance covers only bodily injury to people, not damage to property. Fire insurance and directors insurance have nothing to do with damage caused to someone else's vehicle.