- The first number – This represents costs of bodily injury or death for a single victim
- The second number – This represents the total bodily injury or death compensation for multiple victims combined
- The third number – This number represents property damage for all victims involved.
Usually, the property damage compensation is used to pay for the damages incurred to the victim’s car, but it can also include other property such as a bicycle if you hit a cyclist or a fence or house if you damage those.
Liability does not offer you any compensation for your own bodily injury or property damage that may occur in an accident for which you are at fault.
In order to receive medical coverage fast payday loans for your own injuries, you need to purchase optional medical insurance from your car insurance agent or be covered by private or group health insurance.
Collision car insurance will reimburse you for damages to your vehicle, and this is required by all lenders who finance your car since they are the title holder of your car until the loan is paid in full.
Collision Car Insurance
Collision car insurance is optional for many car owners, but if you have an auto loan you are most likely required to carry this policy type for your car.
This is because, if you are at fault for an accident and your car is damaged, you need to be able to prove financial responsibility to pay for necessary repairs to the car or to cover a total loss if one is declared.
GAP insurance can be purchased, optionally, to help cover the financial loss between a total loss claim and the amount owed on your depreciating car.
If you are struck by an uninsured motorist or underinsured motorist and you do not have uninsured or underinsured motorist insurance, collision insurance may be able to help cover some of the costs associated with the damages to your car.
Collision coverage will provide you with financial protection for damages to your car incurred through an incident with another car, an object, road surface, or even a person.
Lenders require collision insurance for the duration of auto loans so that the cost of your car’s damages can be covered to the extent of the amount of coverage you purchased.
Comprehensive Car Insurance
Comprehensive car insurance is the “everything else” insurance that addresses damages to your vehicle that are not covered by collision insurance.
Comprehensive insurance will cover the costs of repairs to your car based on how much insurance you bought, whether your car is damaged by:
- Hail
- Vandalism
- Fire
Car insurance for comprehensive coverage can be purchased separately or bundled in a package. If you have an auto loan, you will most likely purchase it as a package deal.
If you are not required to carry both collision and comprehensive then you can just buy the insurance you need. However, depending on the age and value of your car, you may decide to keep both collision and comprehensive even after your auto loan is paid.
The deductible for collision and comprehensive is separate from that of liability, so you can increase the deductible on those options to lower your premiums.
Deductibles range from $250–1,000, although $500 is one of the most commonly chosen rates. To decide on the deductible that is right for your policy, determine how much money you can safely pay out of pocket in the event you need to submit a claim.
