If a driver loses control of their automobile and damages a neighbor's fence, which coverage will pay for the damages?

The correct choice is property damage coverage, as it specifically addresses damages that the insured driver may cause to another person's property, which in this case is the neighbor's fence. Property damage coverage is a fundamental aspect of liability insurance that protects the insured from financial loss resulting from damage inflicted upon someone else's assets due to an accident for which the insured may be legally liable.

In this scenario, since the driver has lost control of their automobile and caused physical damage to the fence, property damage coverage will cover the costs of repairs or replacement of the damaged property. It ensures that the injured party, the neighbor in this case, is compensated for their loss, reflecting a key principle of liability insurance to make the affected party whole again after an incident.

While liability coverage generally encompasses this area, the specific mention of property damage coverage makes it the most appropriate choice in this context. Comprehensive coverage is designed for non-collision incidents such as theft or weather damage and would not apply here, while medical payments coverage is intended for injuries sustained by the driver or passengers and does not relate to property damage claims.