In the case of a car accident caused by another driver running a red light, what type of damage occurs to both vehicles?

The type of damage that occurs to both vehicles in the case of a car accident, such as one caused by a driver running a red light, is classified as a direct loss. A direct loss refers to the immediate physical damage that arises from an incident, in this case, the collision itself. When two vehicles collide, the damages to the vehicles are direct and tangible, reflecting the actual monetary value of the damages sustained.

In the context of insurance and risk management, direct losses are easily quantifiable and can be repaired. They typically involve costs associated with vehicle repairs, replacements, and any other damages that are a direct result of the accident. This contrasts with other terms like indirect loss, which might involve secondary effects or losses that result from the accident but are not directly tied to the physical damage itself.