DISCUSSION QUESTION -

Although you may not be thinking of it at the moment, probability plays an important role when reviewing various insurance policies. A careful decision is necessary in order to identify the best plan of action for you and your family, as well as what deductible amounts better fits your need. Did you know that when selecting automotive insurance and or home owner's insurance, you use probability to determine "how likely" it is that you will actually need to utilize this policy by filing an insurance claim. For example, if 14 out of every 100 drivers or 14 percent of drivers within your neighborhood have had a collision with deer during the past year, would you purchase comprehensive or liability insurance on your car? Be sure to explain your reasoning/rationale.

To clarify:

Liability coverage - Liability coverage does not cover any damage to your own vehicle in the case of an accident. What it does cover is any damage done to other vehicles that you're legally obligated to cover. For example, if you're in a traffic accident where you are at fault and you damage another car, liability insurance kicks in.

Comprehensive coverage - Comprehensive coverage goes beyond liability insurance. It covers the damage done to other vehicles, but it also covers damage done to your own vehicle, not just from traffic accidents, but from many natural sources. If your car is damaged in a storm, for example, comprehensive coverage kicks in.