Car Insurance: What It Covers

Most people know that they have to have car insurance to hit the road, but do you know what your coverage involves? The three most well-known types of coverage are collision, liability and comprehensive. Below are brief overviews of when exactly these can be used and other helpful information.   

Collision Coverage

Generally, this insurance coverage involves the cost of repairs in the event of an accident with another vehicle. Under this coverage, a vehicle is normally repaired if the cost is less than its overall value. If these costs would exceed the car’s value, the vehicle may be deemed a total loss. For more info, a specialized insurance agent Glendale AZ is a good resource to review further details on coverage. 

Comprehensive Coverage

Like collision, comprehensive coverage is also used to protect your vehicle, but not from your typical fender-benders or other vehicle-to-vehicle incidents. Whether it’s a rock hitting your windshield or a tree limb falling on your car, comprehensive coverage is the insurance policy most often used in the case of such damages. 

Deductibles

A big part of both comprehensive and collision coverage is the deductible. This is selected for each type when you purchase your policy and is the portion you may be responsible for paying. For example, if you select a $500 deductible for collision coverage and go to your insurance for repairs that cost $2,500, the insurance would pay $2,000, in most cases. 

Liability Coverage

When a person is in the unfortunate circumstance of being found at fault for an accident, liability coverage provides the costs of repairs and injuries to the other party. Depending on your policy, your insurer may pay up to the maximum listed amount in damages to the other party. 

If you are curious about the coverage or deductibles you have, the declarations page of your policy lists the details of your policy. Your insurer can always provide this upon request; it can also be viewed online with many companies. 

Author: Erik Gray