Question

Greta has liability and collision insurance, but no comprehensive insurance on her 2009 Honda Accord. One night, it is stolen from the parking space outside her condo and never recovered by the police. Which of these policies pays her for the value of her vehicle so she can get another one?

Answer 1

Liability because she didn't have the vehicle in a collision...

Answer 2

Answer:

The correct answer is:  Comprehensive insurance. Unfortunately, Greta does not have it.

Explanation:

Comprehensive insurance covers the replacement or repair of a car in the case it was stolen or damaged -only if not in a collision. Liability insurance covers the expenses of the damages caused to a third party but not the insured. Collision insurance covers the damages of the repairs of a car in front of an accident.

Greta only has liability and collision insurance but none of them will cover the value of her vehicle for her to purchase another car. She should have hired comprehensive insurance to help her in front of this situation.