Car insurance is critical, especially in the event of an accident. In the United States, there are different types of car insurance – liability, property damage, comprehensive, and collision. Liability coverage pays for any claims of bodily injury or property damage that you may be liable for as a result of an auto accident. Property damage coverage pays for any damages that you may have caused to another car or property in an auto accident.
Comprehensive coverage pays for repairs or replacement costs for your car if it is stolen or damaged by something other than an auto accident. Collision coverage pays for any damages caused by your car to another car in an auto accident, regardless of who is at fault. Additionally, some states may require you to have uninsured and underinsured motorist coverage which provides coverage in the event of an accident with a driver who does not have insurance or does not have enough insurance coverage. It is wise to review the different coverage plans and limits of coverage before deciding which coverage is right for you and your car.