Likely the best illustration of how loss protection functions is a car crash. Think about this theoretical model:
Suppose Maggie retreats from her carport and hits Lisa’s left vehicle, coming about in $600 of harm.
Maggie is legally responsible for those damages and must pay to have Lisa’s car fixed because she was at fault.
Obligation protection could shield Maggie from being required to cover the harms using cash on hand.
In this present circumstance, Maggie would reach her insurance agency and give insights concerning the episode.
For instance, she might impart to her insurance agency that the occurrence happened beyond her home at 8:00am on the first of the month.
