Collision, Comprehensive, Liability, Full — Learn About Your Auto Insurance Options

Insuring your car or truck is not only mandatory for most drivers, but it protects one of your biggest investments. Having a working vehicle allows you to get to work, take care of your kids, and make independent choices. But what kind of insurance should you get for your vehicle? Here's what you need to know about the four most common types of auto insurance. 

1. Collision Insurance

Collision insurance, as its name suggests, covers damage to your vehicle if you are involved in an actual accident. If you hit another car, for example, this insurance kicks in to help you get yours fixed. It's important to note that collision insurance usually does not pay for damage to others or their property. 

2. Comprehensive Insurance

No car is in motion all the time. And in fact, it can face many dangers that have nothing to do with a vehicle or pedestrian accident. Do you park your car outside? It could be hit by a hailstorm, suffer flooding, or even be damaged by a fallen tree. Even parked indoors, it might be stolen by a thief or vandalized. 

These risks are covered, not by collision insurance, but by comprehensive insurance. This is a broader policy that fills in the gaps. Whether or not you need it depends on factors such as the age of your car, your financial means, and how you use the vehicle. 

3. Liability Insurance

Of course, damage to your own car isn't the only concern when accidents happen. What about the other driver, passengers, or pedestrians? This is where liability insurance comes into play. This insures you against situations where you have a liability for damage or injury to others — not to yourself or your own property. 

Many states require all car owners or drivers to have liability insurance in order to protect others. These states generally publish a minimum liability requirement to qualify. 

4. Full Coverage Insurance

Finally, many drivers opt for a bundled package of insurance that covers all these risks — liability, motor vehicle accidents, and other sources of damage. This may be known as full coverage. You should check the policy for specific details of each facet of coverage. 

Where to Start

Which type of auto insurance do you need? Should you pay for comprehensive on your older car? Do you have enough liability insurance to cover today's expensive vehicles? Find out by meeting with an auto insurance agent in your state today. 

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