Which of the following statements about "All Perils" coverage is true?

"All Perils" coverage is indeed a combination of both collision and comprehensive coverages. This means that it provides a broad range of protection for policyholders. Under this coverage, an insured vehicle is protected from damages resulting from collisions with other vehicles, as well as damages from non-collision-related incidents, such as theft, vandalism, or natural disasters.

By offering a wider array of protections, "All Perils" coverage ensures that the policyholder is safeguarded against various risks that could result in significant financial loss. This holistic approach contrasts with more restrictive coverage options that limit protection to specific events or circumstances. Thus, the statement that "All Perils" coverage combines collision and comprehensive coverages accurately captures the essence of what this type of insurance entails.