Liability Only Car Insurance
What Is Liability Only and Collision Insurance?
You know full well that it’s the law, you must have car insurance if you are driving around. In fact car insurance is of very importance factor to any driver, no matter how good driver you think you are. In fact accidents happen, plain and simple, and you need to be protected in case it does. Moreover not all cars insurances are the same, and you may be a little confused as to the concepts.
The first term you need to know is liability car insurance. This covers you from claims arising from an accident where there’s bodily damage or damage to property. Generally, there are three main sections of any liability car insurance policy: bodily injury liability coverage, liability coverage for damage to property, and uninsured coverage.
The first type of coverage protects you in the case of an accident, for which you are at fault, and others have been injured. Your liability car insurance company will pay any legitimate claims for medical expenses or lost wages.
Moreover if you have damaged to someone’s property, or the side of their wall, you’ll need liability insurance for property damage, which will pay for repairs. In the scenario where you are not necessarily at fault and the other driver does not have liability car insurance, you are protected by uninsured motorist coverage.
Furthermore liability car insurance is not the same as collision car insurance. In fact as you know, nothing was mentioned about fixing your car in case you damaged someone property. That’s because it’s not covered under a simple liability insurance policy. You’ll need full car insurance, unless you’re willing to pay out of your own money. Full car insurance coverage covers repairs to your car in the case of; you guessed it, a collision with another object. Hence you will need comprehensive car insurance to fix that damage.
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, the lower the car insurance premium. You must have full coverage car insurance if you are leasing a vehicle, if you own a fairly new car or if you are making payments to a finance company.
Besides owners of much older cars may want to skip this form of car insurance altogether. If your car is totaled, 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.