If a driver backs out of a driveway and hits a parked vehicle, what type of coverage applies?

In the situation where a driver backs out of a driveway and collides with a parked vehicle, collision coverage is the type of insurance that would apply. Collision coverage is designed to pay for damage to your vehicle resulting from a collision with another vehicle, regardless of who is at fault. Therefore, when the driver backs into a parked car, collision coverage would cover the repairs needed for their own vehicle as well as any damage to the parked vehicle, assuming the driver has that coverage in place.

Comprehensive coverage is intended for damages caused by events other than collisions, such as theft, vandalism, or natural disasters, which do not apply in this scenario. Liability coverage, on the other hand, is meant to cover damages or injuries to others for which the policyholder is found to be at fault; while it may address damage to the parked vehicle, it does not cover damages to the driver's own vehicle. Uninsured motorist coverage is specifically designed to cover injuries and damages when the driver is involved in an accident with someone who does not carry insurance, which is not relevant in this case. Thus, collision coverage is the appropriate type of insurance for this incident.