Question

3. Ashley, Nikki and Jared all selected identical new cars at the same price. Ashley, bought the car with some of his own money and the rest a car loan. Nikki bought the car with cash. Jared leased the car. What is true about their options for car insurance? Nikki and Jared have the option to choose the less expensive liability-only insurance coverage. Nikki as the option to choose the less expensive liability-only insurance coverage. Ashley, and Nikki have the option to choose the less expensive liability-only insurance coverage. Ashley, Nikki and Jared all have the option to choose the less expensive liability-only insurance coverage.

Answer 1

Given:
Ashley, bought the car with some of his own money and the rest a car loan.
Nikki bought the car with cash.
Jared leased the car.

My Answer: Nikki has the option to choose the less expensive liability-only insurance coverage.

Because Nikki paid the car in cash, the ownership of the car is fully Nikki's. Thus, she can choose the less expensive liability-only insurance coverage without any party objecting to her choice.

Ashley co-owns the car with the company or bank she loaned the balance to. She has to heed the decision of the co-owner.

Jared does not own the car. He only leased it. 

Answer 2

The correct answer is, Nikki has the option to choose the less expensive liability only insurance.

Ashley, Nikki and Jared all selected identical cars of the same price. Bu the mode of payment of all three were different. Ashley bought the car with some of his money plus the loan. Nikki bought the car on total cash and Jared bought the car on lease.

Nikki bought the car on cash, so she is the only one who is the sole owner at the moment without any involvement of any other party, partially or fully. She owns the car, so she has the option to choose the less expensive liability only insurance.