Liability Car Insurance:
To begin with, liability coverage is required by law. This part of the policy protects you legally up to the limit that you have purchased. If you cause an accident, you are responsible for any damages to the person’s property (car or other property) as well as any medical costs.
The minimum is a 15/30/5 policy. Here’s what that breakdown means:
- 15 – (the first number) is how much your policy will pay for someone’s bodily injury;
- 30 – (the second number) is how much your policy will pay for all bodily injury bills combined; and
- 5 – (the third number) is the total amount that will be paid for property damage.
Depending on where you live and what the average car costs are for your area, this might not be enough to cover you. If the damages come to more than what your policy covers, then you are responsible for the remainder. If you have assets that you want to protect, you should consider having higher limits to protect those assets.
Comp & Collision Insurance:
Comprehensive coverage is what your auto insurance policy pays you if there are damages to your vehicle caused from an event other than a car accident, such as theft, fire, vandalism, or car theft. Comprehensive coverage also handles other “acts of God” or other natural events, such as a hail storm, fire, a tree branch falling on your car, or if you swerve out of the way of some animal crossing the road.
Collision coverage is what your auto insurance policy pays you when you collide with another car or some other object such as a backing into a pole, clipping another car while parking, or turning into the wall while pulling into a garage.
You may have more questions on what’s right for you, so talk to us today to discuss your current coverage and to see if you can be better protected.