Car Insurance – What Is Liability And Collision Insurance?
You know full well that it’s the law, but you’ve been driving around without car insurance for a while now. Why? Online car insurance is of supreme necessity for any driver, no matter how good or expert you think you are. Accidents do happen plain and simple, and you must be protected in case it does occur. Not every car insurance is similar, although, you may be quite confused as to the concepts.
The first term you need to know is liability car insurance. This coverage protects you from claims arising from an accident where there’s bodily harm or damage to property. Overall, there are several facets to any liability car insurance policy, but the basics are: bodily inury liability coverage, liability coverage for damage to property. and uninsured coverage. The first type of coverage protects you in the case of an accident, for which you are at fault, and others have been injured. Your liability car insurance company will pay any legitimate claims for medical expenses or lost wages. If you’ve run into someone’s wall, or the side of their house, you’ll need liability insurance for property damage, which will pay for repairs. In some instances where you are not the one at fault and the other party does not have his liability car insurance, you are thereby protected by the uninsured, or under-insured, motorist coverage.
Liability car insurance is not the same as collision car insurance. As you can see, nothing was mentioned about fixing your car in the above description. That’s because it’s not covered under a simple liability car insurance policy. You’ll need collision car insurance, unless you’re willing to pay out of your own pocket. Collision car insurance will have to cover necessary expense incurred for the repair of your car in case, a collision with another car or object happens. If you’re one of those people who gets their kicks by running over poor, defenseless animals, this coverage isn’t for you. You’ll need comprehensive car insurance to fix that cracked headlight.
As a rule of thumb, you can always choose the deductible rates.e.the sum that your automobile insurance company will have to pay out to repair your unit. Usually, the higher the deductible, the lower the car insurance premium charged. You will definitely need collision car insurance if you are leasing a vehicle, if you own a fairly new car or if you are making payments to a finance company. Owners of much older cars may want to skip this form of car insurance altogether. If your car is totaled, the car insurance company will pay you that market value of your car, minus the value of your deductible. If you are able to absorb the cost of replacing your car yourself, you may want to forgo this.
Learn more and get your Online Car Insurance Quotes today.
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