Types of Car Liability Insurance: Part I
There are several types of Automobile Liability Insurance, each of which provides a different type of insurance coverage for your car.
- Collision Coverage provides coverage for a policyholder’s vehicle when it is involved in an accident (subject to a deductible). This coverage is intended to provide payments for the repair of the damaged vehicle, or reimburse the policyholder with cash value of the vehicle if it is “totaled” (i.e. cannot be repaired).
- Comprehensive Coverage provides coverage, (subject to a deductible) for an insured's vehicle that is damaged by incidents that are not collisions, yet still damage the vehicle, such as fire, theft, damaged caused by attempted theft, vandalism, bad weather, etc. Comprehensive coverage is also called Other Than Collision coverage.
- Uninsured/Underinsured Coverage provides coverage if the other at-fault party or parties does not have any or enough insurance, acting in effect as the other at-fault party or parties’ insurance company. Uninsured or Underinsured Coverage is also called UM/UIM.
Types of Liability Insurance Part II>>
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