Sometimes the trickiest part of auto insurance is figuring out what you need, what you’re paying for, or what is going to cover what. So for the sake of simplicity, here are a few common types of auto insurance and what the terms mean.
Liability. If you’re in an accident with another vehicle and you’re at fault, you’re liable (that is, you’re responsible) for the damage to the other person’s property or body. These damages are covered by the liability portion of your policy, up to the maximum amount on your policy. In Virginia and North Carolina, as well as most other states, liability insurance is the required minimum coverage.
Collision. Let’s say your foot slips off the brake as you’re headed into the drive-thru for a quick burger, and you run into the speaker box as you’re trying to order. Collision covers you here. Basically, collision insurance covers you against collisions with anything other than automobiles.
Comprehensive. In the event a branch falls from a tree and smashes your windshield, or a freak hail storm materializes out of nowhere and golf ball sized chunks of ice pummel your hood, comprehensive insurance will cover the damage. Generally, comprehensive covers damage to your automobile that doesn’t occur while you’re driving it, and also covers such things as theft and vandalism.
Full Coverage. This term is used to describe coverage that includes all three above: liability, collision, and comprehensive.
If you’re in Virginia or North Carolina and you’re not sure what type of coverage you need, or if you have enough insurance, get in touch with us at Insurance Doctor. We’ll be happy to walk you through the policies we have available and help you find the one that fits you best.