What Is Liability And Collision Insurance?

Vehicle coverage is essential to any vehicle owner, doesn’t matter how experienced the driver or in what condition the persons car is in.

You know full well that it’s the law, but you’ve been driving around without car insurance for a while now. Why? Car insurance is of supreme importance to any driver, no matter how good of a driver you think you are. Accidents do happen, plain and simple, and you need to be protected in case it does. Not all car insurance companies are the same though, and you may be a little confused as to which one will tend to your needs the best.

The first term you need to learn is liability car insurance. This covers you from claims arising from an accident where there’s any physical damage or damage to property. Generally, there are three main sections of any liability car insurance policy

The first type of coverage protects you in the case of an accident, for where it was your fault, and the other parties involved have been injured. Your liability car insurance company will pay any legitimate claims for medical expenses or lost wages.

If you’ve driven into someone’s wall, or the side of their house, you’ll need liability insurance for property damage, which will pay for repairs.

In the instance where you are not necessarily at fault and the other driver does not have liability car insurance, you are protected by uninsured, or under-insured, motorist coverage.

Liability car insurance is not the same as collision car insurance. As you can see, it does not include fixing your car as shown in the above description. That’s because it’s not covered under a simple liability car insurance policy. You’ll need to take out collision car insurance, unless you’re willing to pay out of your own pocket.

Collision car insurance covers repairs to your car in the case of, you guessed it, a collision with another object. If you’re one of those people who gets their kicks by running over poor, defenceless animals, this coverage isn’t for you. You’ll need comprehensive car insurance to fix that cracked headlight.

Generally, you can choose you’re deductible rate, i.e., the amount that your car insurance company will pay out to repair your car. Typically, the higher the deductible rate, the lower the car insurance premium. 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 financial company.

Owners of much older cars may want to skip this form of car insurance altogether. If your car is totalled, 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.

Seeing that every day life alone can give a lot of drama, insurance coverage is there to give you a peace of mind in protecting your vehicle as well as yourself.