Suppose that you only have liability and comprehensive car insurance and you allow your roommate (who doesn't have car insurance) to drive your car to run an errand. What will likely happen if there is a single-car accident causing moderate damage to your car while your roommate is driving?

Respuesta :

What will happen is that YOUR INSURANCE COMPANY WILL NOT PAY FOR THE DAMAGES.
Liability car insurance covers damages and injuries to third party's car only, it does not cover damages to the insurance owner's car. Comprehensive car insurance only cover damages done to one's car as a result of theft, fire, natural disaster, vandalism and other such acts, but does not cover damages that occur as a result of collision.

There will no coverage in case of any type of car accident causing moderate damage.

Further Explanation:

Comprehensive Insurance:

Comprehensive insurance is a type of auto insurance where the coverage includes the damage of the car in the following cases:

• Theft

• Fire

• Falling object

• Animal damage

• Vandalism

• Damage by riot

Comprehensive insurance does not include the damage from the accident. In some states of the country, it is known as “other than collision” insurance. The insurance cover will not include the damage from (1) medical insurance expenses after the accident, (2) accident from another person’s vehicle, (3) accident of the vehicle.

Single car accident causing moderate damage:  

In the given case, the car accident is caused by the roommate of the insured person. The person has opted the liability and comprehensive insurance. The insurance company does not provide the coverage for the accident in case of comprehensive insurance. Therefore, there will be no coverage in the given case as the damage is occurred due to the accident (collision).

Thus, there will no coverage in case of any type of car accident causing moderate damage.

Learn more:

1.      Learn more about the out-of-pocket expenses

https://brainly.com/question/1362335

2.      Learn more about the insurance rules

https://brainly.com/question/6075135

3.      Learn more about the insurance cover

https://brainly.com/question/1362335

Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Insurance

Keywords: Suppose, that, you, only, have, liability, and, comprehensive, car, insurance and, you allow, your, roommate, (who doesn't have car insurance), to drive, your, car, to run, an, errand, what, will, likely, happen, if, there, is a, single-car, accident, causing, moderate, damage, to, your, car, while, your, roommate, is, driving.