Different Types Of Auto Insurance Coverage
Reader’s Question:
What are the different types of automobile insurance coverage?
Abigail
Houston Texas
Knowing what the automobile insurance coverage is in your policy is very important since it can determine how much premiums you would pay. In the US, car owners are required to have insurance. The government does not specify as to what type of coverage one should but only what the minimum is. So what are the types of coverages that one can avail?
In general, there are three types of coverage that insurance companies offer. These are collision, liability and comprehensive coverage. Liability coverage is the one that protects you when you are the one who caused an accident. That is, you are the one “at fault.” This coverage will be the one to pay for any personal injury or property damage suffered by the other party. This will not pay though for any injury done to you or damage done to your property.
A collision coverage is automobile insurance coverage that will pay the damages done to your car. The good thing about this coverage is that it does not discriminate to who was at fault. This pay will for whatever damage was done to your car and if its irreparable, then the company will you an amount equal to the market value of your car. However, collision coverage will not pay for injuries that you may have as a result of the accident.
Finally there is comprehensive coverage. It is not a combination of the previous two. Rather this type of coverage will protect you from any damage done to your car that are not caused by motorists. Fire or floods are examples of these. In insurance lingo, these are termed as acts of God. The insurance company will also pay for a replacement if ever your car gets stolen. And get this, if you accidentally hit an animal, this coverage will also pay for damages, if any.
While these three are the main criteria, there are also other types that you can avail of in Houston. Ask your agent or company on what other automobile insurance coverage they have.