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

Greta will not receive compensation for the value of her vehicle through her insurance policies and may have to explore other avenues for recovering the value of her vehicle.

Step-by-step explanation:

If Greta's 2009 Honda Accord is stolen and she does not have comprehensive insurance, her collision insurance policy will not cover the theft.

Liability insurance only covers damage to other vehicles or property if Greta is at fault in an accident. Collision insurance covers repairs or replacement of Greta's own vehicle if it is damaged in an accident, but it does not cover theft.

Therefore, in this scenario, Greta will not receive compensation for the value of her vehicle through her insurance policies. She may have to explore other avenues, such as filing a police report and contacting law enforcement and her local authorities.

Answer 2

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

Step-by-step 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.