Question

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?

Answer 1

Nikki as the option to choose the less expensive liability-only insurance coverage.

Answer 2

I believe the answer is: the less expensive liability-only insurance

When you choose liability-only insurance, the insurance company would only make payments if the event/accidents do not happen because of your fault.
So, let's say that a car accident happen because you are crossing the red light. Even though there is a massive damage on the car, your liability-only insurance wouldn't cover it because the accident happen because of your carelessness.