Question

John, Alyson and Jared all selected identical new cars at the same price. John bought the car with some of his own money and the rest a car loan. Alyson bought the car with cash. Jared leased the car. Which of them has the option of choosing the least expensive insurance coverage?

Answer 1

John, Alyson, and Jared have different insurance coverage options based on their purchase method. John needs comprehensive and collision coverage, Alyson has the flexibility to choose any coverage, and Jared must have comprehensive and collision coverage for the leased car.

Step-by-step explanation:

When it comes to insurance coverage for their new cars, John, Alyson, and Jared have different options depending on their purchase method. Since John bought the car with some of his own money and the rest through a car loan, he will need to have comprehensive and collision coverage as required by the lender. Alyson, who bought the car with cash, has the option to choose any insurance coverage she wants, but she can consider getting liability coverage only since she does not have a loan. Jared, who leased the car, must have comprehensive and collision coverage as required by the leasing company.