There are three main types of car insurance coverage: liability, collision, and comprehensive. Here is a brief explanation of each type:
Liability: Liability insurance covers any damages caused to other people, their property, or their vehicles in an accident for which you are responsible. It does not cover the cost of any repairs or medical bills for you or passengers in your vehicle. Generally, this is the minimum coverage required by law.
Collision: Collision coverage covers the cost of repairs to your car if it's damaged in an accident. This type of coverage usually also includes uninsured motorist coverage, which covers the cost of repairs for your vehicle if the other driver is at fault and does not have insurance.
Comprehensive: Comprehensive coverage pays for repairs or replaces your car if it is damaged by something other than a collision, such as flooding, fire, theft, or vandalism. This coverage is sometimes referred to as “other than collision” or “OTC” coverage.
If you're shopping for car insurance, it's a good idea to familiarize yourself with the coverage options available so you can find the right policy for your needs. You can learn more about the different types of car insurance coverage by reading this article.
