What type of coverage allows ICBC to pay for repairs when the other driver is at fault, in areas where suing the at-fault driver is prohibited?

The correct answer relates to the concept known as inverse-liability coverage. This type of coverage is designed to enable an insurance company—like ICBC (Insurance Corporation of British Columbia)—to cover the repair costs for a driver when another party is at fault for an accident, particularly in jurisdictions where legal action against the at-fault driver is limited or prohibited. This allows for a more streamlined process of handling claims and facilitates quicker repairs, as the insured party does not face the challenge of pursuing a lawsuit to recover their losses.

In contrast, collision coverage typically involves the insured party's own policy covering damage to their vehicle regardless of fault, while comprehensive coverage includes protection against non-collision-related incidents such as theft or natural disasters. Specified perils coverage is a limited form of coverage that applies only under specific circumstances outlined in the policy, thus it does not address the situation of an at-fault driver in the context mentioned.