Idaho Property and Casualty Practice Exam 2025 - Free Practice Questions and Study Guide

The statement about Damage to Your Auto coverage that holds true is that in the event of a total loss, an adjustment will be made for the physical condition of the vehicle. This means that when assessing the value of the vehicle at the time of a total loss, factors such as wear and tear, previous damages, and general condition will be taken into account. This ensures a more accurate value reflecting what the insured vehicle was worth considering its overall physical state prior to the loss.

Addressing the other options provides context:

The option regarding the cost to repair previous damage if required to fix new damage is not typically included in standard coverage since claims adjusters focus primarily on the damage incurred in the recent event rather than prior conditions unless they directly affect the new damage.

The statement regarding the sales tax on a replacement vehicle not being covered can be misleading as some policies may offer coverage for sales tax, depending on the specifics of the policy.

Finally, the Limit of Liability being the greater of the vehicle's actual cash value or the cost to repair suggests that the insurer will cover either the repair costs or the cash value, whichever is greater. However, in typical Damage to Your Auto coverage, the limit is often set as the actual cash value or the