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Types of Auto Insurance – Know What You're Getting Before You Buy

Before you purchase car insurance, it's important to know what you need. Since there are many different types of auto insurance, you need to calculate your budget and determine the main reason for getting car insurance. Below, we'll look at the different types of auto insurance and what they're for, specifically.

Liability Auto Insurance – Liability insurance has one main purpose – to pay for the damage to someone else's car when you've been in a wreck and it's your fault. Liability insurance does absolutely nothing for your car, even if it is damaged, so you'll have to pay for those damages from your own pocket. If you want insurance that will also pay for your vehicle, you're going to have to find a different type.

Collision Insurance – Collision insurance will pay for the damage that occurs to your vehicle in a wreck, regardless of whose fault the wreck is. However, collision insurance does not pay for the damage that occurs to someone else's car. If you want both of those things covered, you'll have to pay for both collision insurance and liability insurance. This would protect you in a wreck whether it's your fault or someone else's.

Comprehensive Insurance – Comprehensive insurance pays for damages that occur from third parties or acts of god. For instance, flood, lightning, vandalism, and the like are all covered by comprehensive insurance. While this is a helpful type of insurance, this is the most commonly neglected kind. Only with this kind of insurance can you be protected and the damages paid for if someone stole your vehicle and wrecked it, if a tree limb fell on your car or if a boy in the neighborhood batted a softball through the window.

By understanding these types of insurance and determining the kind of insurance you need, you can be prepared when you go to purchase it.

Posted on 11.16.2009 by zippy