Question

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?

Answer 1

Answer:

Collision

uninsured motorist

comprehensive

liability coverage

Explanation:

From the question, we are informed about Abraham who 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. In this case the basic types of coverage Abraham should buy to satisfy the bank requirement and to best protect himself from the risks of operating an automobile are;

✓ uninsured motorist

✓comprehensive

✓liability coverage

Insurance is very essential in protecting an individual or firm from any form of financial loss, it can be regarded as a kind of risk management and it is way to avoid uncertain loss. Then if Adam could buy the coverage he will be protected from loss in future.