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When you buy auto insurance, you have a choice of buying a full coverage policy or a basic “state minimum” policy. The difference is what gets paid for if you cause an accident. A full coverage policy will pay to fix or replace your car after you pay a deductible amount, like $500. A basic “liability” policy will only pay for damage to the other vehicle, if you cause the accident. Fixing your car becomes your problem. As you would expect, the full coverage policy costs more because it does more for you.

Answer the following questions about buying auto insurance.
a. What would be the situation in which you would probably buy just the basic auto insurance? Hint: It has something to do with the car you are driving and paying less for the insurance.


b.What would be a reason that you would be willing to pay more to have the full coverage auto insurance?

  • math -

    i totally don't get the question that is being asked :(

  • math -

    a. Why wouldn't you buy a full-coverage policy?

    b. Why would you buy a full-coverage policy?

  • math -

    a. because i would have to pay more for auto insurance
    b. If i want the full coverage for car accidnts and other stuff then i would spend more on auto insurance

  • math -

    A 10-year-old car isn't worth much, so you don't need full coverage insurance to pay for it if it's totaled. A new car needs full coverage to pay for the cost of a new car if it's totaled.

  • math -

    okay thank u

  • math -

    You're welcome.

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