When does the physical damage coverage in a personal auto policy apply?

The physical damage coverage in a personal auto policy is designed to protect the insured's vehicle against certain types of damage. This coverage typically includes two primary components: collision coverage and comprehensive coverage.

When the loss is caused by a collision, which refers to an impact with another vehicle or object, this directly falls under the collision coverage. Therefore, the correct answer highlights a scenario where physical damage coverage applies because it specifically addresses the situation of damage resulting from a collision.

While theft, vandalism, and the overall act of a vehicle being stolen can also lead to losses that are covered under different components (comprehensive coverage for theft and vandalism), the question specifically focuses on the nature of coverage resulting from a collision, making that option the most appropriate choice in this context.