Texas Property and Casualty License Practice Exam

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Prepare for the Texas Property and Casualty License Exam. Study with flashcards and multiple choice questions, each question includes hints and detailed explanations. Get ready for your exam!

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Under collision coverage, what is the maximum coverage for permanently installed sound and video equipment?

$1,000
$2,000
$1,500
$500

The correct answer is: $1,500

In the context of collision coverage, the maximum payout for permanently installed sound and video equipment is typically set at $1,500. This coverage applies specifically to items like factory-installed or professionally installed equipment that is designed to be used within the vehicle. Collision coverage primarily protects your vehicle from damage due to a covered collision, but it also extends to certain accessories and equipment that enhance the vehicle's functionality. The specified limit ensures that policyholders have a fair amount of protection for valuable installed equipment without exposing insurers to unlimited financial risk for aftermarket enhancements. This amount is well-defined in most standard auto insurance policies, reflecting the balance between adequate coverage for policyholders and manageable risk for the insurer. Understanding these limits is vital when selecting auto insurance and assessing the overall value of the coverage being provided.