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.

Question

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?

Answer 1

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

Answer 2

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

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

Answer 3

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

Answer 4

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.

Answer 5

okay thank u

Answer 6

You're welcome.

Answer 7

a. The situation in which you would probably buy just the basic auto insurance is if you have an older or less valuable car. Since the basic liability policy only covers damage to the other vehicle if you cause an accident, it would be more cost-effective to opt for this policy if your car has a low value. This is because the cost of repairs or replacement for an older or less valuable car may be less than the additional premium you would pay for a full coverage policy.

b. One reason you would be willing to pay more to have the full coverage auto insurance is if you have a newer or more valuable car. In this case, the cost of repairs or replacement for your own car can be significantly higher. By having a full coverage policy with comprehensive and collision coverage, you ensure that your own vehicle will be repaired or replaced in the event of an accident, regardless of fault. This provides additional peace of mind and financial protection for the value of your car.