Yes, of course you're covered if you hit something on the road.
It just happened to me for the first time ever about two weeks ago. Someone lost the full size spare to their boat trailer, two other cars hit it, then a semi skidded it into my lane. I was doing about 75mph at the time, with traffic on all sides. All I had time to do was aim to straddle it rather than hit it with one of my wheels.
It was a jarring impact. The car slowed, sputtered, made a grinding noise, and smoked, so I immediately pulled to the side of the road and shut it down. The noises and smell were from skidding the tire and wheel along the ground for a few hundred feet.
The wheel/tire was pinned under the car. After making sure there were no leaks, I backed up and it dislodged, dropping chunks of expensive looking alloy shrapnel.
Short version: pushed motor up 3/4 inch, grenaded motor mount and trans torque arm (the shrapnel pieces), bent the subframe/cradle, broke bits off the oil pan and trans pan, and bent a few bolts and mounts. Final bill $3300.
Thank god it wasn't my car. The other two cars that hit it also had undercarriage damage and had to be towed away.
E