If you’re planning to get your vehicle insured in the United States, you need to understand the different types of coverage available for your vehicle, and then figure out how much umbrella coverage do I need. In this article, we’ll break down what the different types of coverage are, and then look at how to get a quote for your car insurance coverage.
Liability Coverage: This is the bare minimum insurance you should have. It pays for damage or injuries to other people or property that happen because of your vehicle. Your state’s liability law typically requires this coverage. Liability insurance can cover damage to your vehicle, property, or another person’s vehicle if they get hurt or injured by your vehicle. Sometimes, liability coverage will also cover your vehicle’s repair costs.
Physical Damage Coverage: This coverage pays for damages to your vehicle from physical damage or vandalism. It covers things like vandalism caused by the vehicle owner’s or driver’s negligence. This coverage will pay for any damage done to the vehicle from vandalism and will also pay for damage to property and damage your vehicle causes to other people or properties. People often call this third party liability because it pays for damages to your vehicle or to other people or vehicles that happen because your vehicle was driving around or parked and then got vandalized.
Collision Coverage: This is an important type of coverage that gives you financial compensation if you become a victim of theft or vandalism from another person, or from damage caused by a vehicle accident. This differs from liability coverage because liability only pays for damage or injuries caused by a motor vehicle, while collision coverage pays for damage or injuries caused by a vehicular accident. Collision coverage also covers property damage and medical expenses from a vehicle accident. This type of coverage won’t pay for damage caused to your vehicle though.
Comprehensive Coverage: Comprehensive coverage gives you financial compensation for property damage or personal injury. The amount of money you’ll receive from this policy varies based on the type of property or injury you sustained. If you get seriously injured in a vehicle accident, comprehensive coverage will pay for the costs of treating and repairing your body, plus any medical expenses that resulted from your injury. Comprehensive coverage will also pay for damages to your property from vandalism caused by someone else’s vehicle.
You can use comprehensive coverage for many types of events and circumstances. The amount of coverage you receive depends on how extensive the event or incident was. In a car accident, the coverage amount depends on what type of vehicle got damaged or destroyed. If the damaged or destroyed vehicle is yours, and you can prove it happened because of someone else’s negligence, comprehensive coverage will pay to replace the vehicle or repair any damages. If you damage another person’s vehicle, comprehensive coverage will pay for repairs or replacement of personal property.
Liability and physical damage coverage are different types of coverage, and your state’s liability law determines the amounts. Liability coverage will pay for damages or injuries to people or property if you’re found liable for damages, whether you caused those damages intentionally or not. In this case, your insurance company will pay for damages or injuries that happened because of your negligence. If you were to sue someone for intentionally causing your damages or injuries, liability coverage will only cover the extent of the monetary loss you suffered from being sued.
Physical damage coverage pays for the actual physical damage done to you or your car by a third party. This includes scratches, dents, broken parts, or property damage from vandalism. Some physical damage coverage also includes legal fees, which liability coverage generally doesn’t include in most states. The amount of physical damage covered in physical coverage depends on the value of the damaged vehicle and the damage done to the vehicle.