Discussing liability and collision insurance
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Car insurance is complicated. All you know is that it’s the law to have it but still many people don’t. Regardless of how good of a driver you are, accidents happen and insurance is what protects you when they do.
You need liability car insurance to protect you in case you are in an accident that involves bodily injury or property damage. There are three main parts to the average liability car insurance policy: bodily injury coverage, property damage coverage and uninsured motorist coverage. If you have an accident where you are at fault, bodily injury and property damage coverage will pay for medical expenses or lost wages for injured parties and the repair costs for damaged property. If you have an accident where the other driver does not have insurance, then uninsured motorist coverage will cover your expenses related to the accident.
It is important that every driver understand the difference between liability insurance and collision insurance. Liability coverage does not pay for any auto repairs–those are paid out of pocket by the driver. Collision insurance does pay repair costs in the event of any accident, whether with a moving vehicle or inanimate object. Only comprehensive insurance covers any damage resulting from a driver striking an animal.
In most cases drivers can decide on their own deductible rates. A deductible is the sum your car insurance provider offers for repair of a vehicle. In most cases, the higher the deductible rate is the lower the premium payment will be. If the driver is leasing a car, owns a newer model, or is still making monthly payments, collision insurance is essential. If the car is older, collision insurance might not be necessary, as long as the driver is able to afford to buy another car without outside financing.
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