ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Flexible expenses
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Fixed expanses
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Collision coverage
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None of the above
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Detailed explanation-1: -Third-party insurance, which is also sometimes referred to as ‘act-only’ insurance is a statutory requirement for all vehicle owners as per the Motor Vehicle Act. It is a type of insurance cover where the insurer offers protection against damage to the third-party vehicle, personal property and physical injury.
Detailed explanation-2: -Property damage liability-It covers property damages to third parties such as another person’s car. Medical payments-This payment is done to the policy owner and other passengers in the policy owner’s car.
Detailed explanation-3: -Collision Accidents involving other vehicles & stationary objects, such as hitting a pole or guardrail. Comprehensive Unexpected damage that is outside of your control, including hitting an animal or a tree branch falling on your vehicle.
Detailed explanation-4: -Comprehensive claims tend to be filed for less damage than collisions, so having a lower deductible is often logical. Collision deductibles can sometimes go as low as $100 or $250, but most agents recommend that you start at $500 and increase if you can afford to.