If you own a car and do not have a loan on it, you are free to choose any type of car insurance coverage you would like, as long as it meets the minimum standards in your state. If you do not know a lot about car insurance, you might end up choosing the wrong coverage, though. Here is an explanation of the difference between liability coverage and collision coverage, so that you can make a wise decision about what type you should purchase.
Liability coverage
If you have car insurance, the bare basics you can purchase is liability coverage, and this is a type of coverage everyone should have on their cars. In fact, it is a legal requirement if you drive. Liability coverage is the type of insurance coverage that protects other people if you happen to cause an accident. This coverage would pay for the damages you cause to other people. It will pay for the costs for their cars to be repaired, medical bills, and other types of damages they may experience as a result of the collision, including pain and suffering. Liability coverage does not cover your car, though.
Collision coverage
Collision coverage is very different from liability coverage, and it is the main type of coverage you have for you and your car. This type of coverage kicks in and pays damages when you cause an accident that leaves your own car damaged. If you collide with another driver and are at fault for the accident, you would be responsible to pay for the repairs your car needs if you did not have collision coverage. Because of this, having collision coverage is vital, and it is a legal requirement if you have a loan with a car lender.
In addition to these two types of coverages, you can also add comprehensive coverage to your policy, and this is a type of coverage designed for claims that are not related to driving. Comprehensive offers coverage if someone breaks into your car or steals it, and it covers the damages that may occur to your car from hail, wind, or rain.
If you have questions about these types of coverages and would like a quote, contact a car insurance company of your choice. They can give you a quote for any type of coverage you may want, and you can do this by calling an agent today.
Share