Liability covers bodily injury (BI) and property damage (PD)--and it’s mandatory in most states. It covers your legal liability, up to the dollar limits you choose, for damages to others in a covered vehicle accident.
With BI/PD, your insurance company pays for damages--to person and property--that you’re legally obligated to pay as a result of an accident. And if your policy covers you, your insurance company will pay for a lawyer to defend you if you’re sued after an accident.
With collision coverage, your insurance company pays for damages if your vehicle collides with another vehicle or object. Collision coverage involves a deductible amount you choose when you purchase your policy.
This is the amount you pay before your insurance company picks up the rest of the tab. Remember: the deductible amount is the amount you pay in the event of a claim.
Comprehensive covers damage caused by events other than a car collision, such as fire, theft, vandalism, hail, or flood. It also covers damage caused by your vehicle colliding with an animal.
If your car is stolen, it may even cover the cost of a rental, subject to a daily limit. And like collision coverage, there’s usually a deductible.
Depending on the state in which you live, you may have Medical Payments coverage or Personal Injury Protection (PIP) coverage available to you! While these each work differently, they provide coverage for medical care provided to you as a result of a car accident.
An independent insurance agent can help you determine the price, coverage, and service that best meets your needs.