Abraham has just purchased his first car.His bank,First State Bank,loaned him the money to buy the car and has required him to purchase insurance to protect the car as the collateral for the loan.Which basic types of coverage should Abraham buy to satisfy the bank requirement and to best protect himself from the risks of operating an automobile?

Question

Quizplus · Accepted Answer

Collision coverage will protect the car in the event of an accident, comprehensive coverage will provide coverage for non-collision events such as theft, fire, or vandalism. Uninsured motorist coverage will protect Abraham if he is in an accident with someone who does not have liability insurance or if he is involved in a hit-and-run. Liability coverage will provide protection if Abraham is at fault in an accident and damages another person's property or injures them. Therefore, choosing option D, which includes all of these types of coverage, will best protect Abraham from the risks of operating an automobile and satisfy the bank's requirement.

Abraham Has Just Purchased His First Car