There are many types of auto insurance available to drivers. The most common are liability, collision, and comprehensive. Each one covers different types of damages and has different features.
While liability insurance is the most basic type of auto insurance, it only covers damages to other people and property if you are at fault in an accident. It does not cover any damages to your own vehicle.
Collision insurance covers damages to your own vehicle if you are involved in an accident, regardless of who is at fault. It is often required by lenders if you have a loan on your vehicle.
Comprehensive insurance covers damages to your own vehicle from things other than accidents, such as fire, theft, or vandalism. It is not required by law, but is often required by lenders if you have a loan on your vehicle.
What Are the Four Major Auto Insurance Policies?
Auto insurance is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.
Auto insurance may also offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.
There are four types of auto insurance policies:
Liability insurance: This type of insurance protects you from financial responsibility if you cause an accident that injures someone or damages someone else’s property.
Collision insurance: This type of insurance covers damage to your own vehicle if you are involved in an accident.
Comprehensive insurance: This type of insurance covers damage to your own vehicle from events other than accidents, such as weather, theft, or vandalism.
Uninsured/underinsured motorist insurance: This type of insurance protects you from financial responsibility if you are involved in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages.
Insurance is a vital part of our lives for a number of reasons. It helps to protect us financially in the event of an accident, illness, or other unforeseen event. It can also provide peace of mind.
While insurance may seem like an unnecessary expense, it can be a lifesaver in the event of an unexpected setback. No one knows when an accident will happen, but having insurance can help to ease the financial burden if one does occur. After an accident, an auto body repair shop can help navigate insurance issues with you. Contact Anderson Auto Body to answer your questions today.