Answer:
The answer is A. Collision.
Explanation:
Collision coverage helps pay for the cost of repairs to your vehicle if it is hit by another vehicle. It may also help with the cost of repairs if you hit another vehicle or object.
Collision is the type of insurance which lenders might require borrowers to have when taking out an automobile loan.
An agreement known as an insurance policy provides financial protection or reimbursement against losses from an insurance company to a person or an organization. In order to make payments to the insured more manageable, the company pools the risks of its clients.
Insurance plans are used to protect against the possibility of monetary losses, large and small, resulting from harm to the insured person or her property or from liability for harm or damage to a third party.
There are many various kinds of insurance plans available, and almost any person or organization may find an insurance firm that will insure them for a fee. Auto, health, homeowners, and life insurance are the most popular categories of personal insurance plans.
Collision insurance is a type of auto insurance that pays the insured for damage to their own car that was caused by the insured driver's negligence. To protect drivers in the event of collision damage, this kind of insurance is frequently acquired as an addition to a normal motor policy. Collision insurance, as the name suggests, compensates the insured for harm caused by a real collision. Vandalism and theft-related damage are not covered by it. Additionally, even if the other driver was at fault, it does not cover damage that is paid for by their own insurance.
For your vehicle to be protected against the financial loss that results from physical damage to your vehicle, collision coverage is crucial. Accidents can happen to anyone at any time. Every time an accident occurs, someone is to blame, and that someone may be you.
There is a collision coverage limit, which is the most your insurance will contribute to a covered claim. The real cash worth of your vehicle often serves as your collision coverage limit (its value minus depreciation).
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