What are the 3 levels of insurance?

 

The three main levels of insurance coverage are:

1. 1.Basic or Minimum Coverage: This level typically provides the minimum amount of coverage required by law or necessary to meet basic needs. For example, in auto insurance, basic coverage may include liability insurance to cover damage or injuries caused to others in an accident.

2.Standard Coverage: Standard coverage offers a moderate level of protection beyond the basic requirements. It may include additional types of coverage or higher coverage limits compared to basic coverage. For example, in auto insurance, standard coverage may include collision and comprehensive coverage in addition to liability insurance.

3.Comprehensive or Full Coverage: This level of coverage provides the highest level of protection, including a wide range of coverages and higher coverage limits. It offers greater financial security by covering a broader array of risks and potential losses. For example, in auto insurance, comprehensive or full coverage may include liability, collision, comprehensive, uninsured/underinsured motorist coverage, and other optional coverages.