Car insurance policies are confusing. There are so many types of car insurance plans, with some being more expensive than others. Further, different car insurance plans may cover different things. Trying to decide which auto insurance policy is right for you and which automotive insurance provider you should use can be difficult.
Fortunately, with a bit of time and effort, you can find the car insurance plan you need.
There are three different types of insurance plans: liability, comprehensive, and collision.
Liability insurance is often the cheapest insurance policy. This insurance plan will typically only cover your liabilities. For example, if you get into an accident, and it’s your fault, your insurance company may pay to repair or replace the other driver’s car. The insurance company may also pay for that driver’s medical bills. It won’t cover damage to your own car.
Collision insurance, however, will pay for damage to your car caused by an accident, even if you caused it. That said, if your car is damaged in an event not related to a collision, collision insurance will typically not cover the damages. If your car is damaged during a hailstorm, for example, it may not be covered. Comprehensive insurance, however, will pay for non-collision damages, including theft.