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Zeke hit a 10 - point buck while driving home from work. He sustained no personal injuries, but the
damage to his vehicle was $3, 400 . The buck was launched by Zeke's vehicle into oncoming traffic,
causing $5, 000 in damage to a passing BMW X5 . He was not allowed to process the deer for
sausage. His auto insurance coverage includes collision and comprehensive and his liability limits
are $250, 000/$500, 000/$100, 000 . His deductible is $1, 000 .

What type of insurance is needed?

Answer :

Zeke needs comprehensive, collision, and liability insurance coverage, all of which he already possesses.

The type of insurance needed in the scenario described would be comprehensive and collision insurance which Zeke already has, as well as liability coverage which can help cover damages incurred to other parties' vehicles.

Comprehensive insurance covers damages to Zeke's car that are not a result of a collision, such as hitting an animal, while collision coverage would help pay for the repairs to Zeke's vehicle after the accident. The liability coverage with the limits of $250,000/$500,000/$100,000 that Zeke has would cover the damages to the BMW X5, assuming the damages do not exceed these limits; in this case, the mentioned $5,000 damage can be covered.

The deductible of $1,000 that Zeke has means he would have to pay that amount out-of-pocket before insurance covers the remaining $2,400 of damage to his vehicle. Using the provided example, if each of the 100 drivers pays a premium of $1,860 each year, it will allow the insurance company to collect $186,000 which is needed to cover the costs of the accidents that occur among those drivers.

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