Auto insurance can range from liability only to full coverage.
Damage done to other vehicles or other property would fall under liability coverage. In the event of an accident, bodily injury to others is also covered by liability insurance. Liability only can be a good option for older autos that have seen their share of wear and tear. In this case it is more economical to only carry liability insurance rather than insuring your vehicle with full coverage, which covers your personal auto against physical damage.
Full coverage adds physical damage. This coverage is exactly as it sounds, coverage in the event of a physical loss. There are two parts of this coverage: comprehensive and collision.
Comprehensive coverage, also called “other than collision,” is for non-accident losses. For example: hail damage, theft, windshield repair/ replace, vandalism, etc.. One exception to the rule of “other than collision” is if your vehicle collides with an animal. These losses are also considered comprehensive.
Collision coverage relates to vehicle collisions, either with other vehicles or other property, for example a mailbox or a traffic sign. Again, this coverage is in place for damage to your vehicle. Even if you are at fault in an accident this coverage does not come into play for the other driver’s vehicle.
If you need to use either your comprehensive or collision insurance a deductible will be applicable. A deductible is a set amount you and your insurance agent select as the amount you are to pay in the event of a loss. Lower deductibles can be nice if you have a loss, however, the lower the deductible the higher the insurance premium. Keep these things in mind when choosing a deductible and consider that over time, the lower premium may make up for the higher deductible amounts.
It is also worth noting, auto insurance policies can sometimes offer coverage for trailers, motorcycles, RV’s, and classic cars. Depending on the policy, you can write these lines as a part of an auto insurance package or on an individual basis.