Provided you have collision insurance, your car will be covered regardless of who is at fault for the accident
- The first number – This represents costs of bodily injury or death for a single victim
- The second number – This represents the total bodily injury or death compensation for multiple victims combined
- The third number – This number represents property damage for all victims involved.
Usually, the property damage compensation is used to pay for the damages incurred to the victim’s car, but it can also include other property such as a bicycle if you hit a cyclist or a fence or house if you damage those.
Liability does not offer you any compensation for your own bodily injury or property damage that may occur in an accident for which you are at fault.
In order to receive medical coverage for your own injuries, you need to purchase optional medical insurance from your car insurance agent or be covered by private or group health insurance.
Collision car insurance will reimburse you for damages to your vehicle, and this is required by all lenders who finance your car since they are the title holder of your car until the loan is paid in full.
Collision Car Insurance
Collision car insurance is optional for many car owners, but if you have an auto loan you are most likely required to carry this policy type for your car.
This is because, if you are at fault for an accident and your car is damaged, you need to be able to prove financial responsibility to pay for necessary repairs to the car or to cover a total loss if one is declared.
GAP insurance can be purchased, optionally, to help cover the financial loss between a total loss claim and the amount owed on your depreciating car.
If you are struck by an uninsured motorist or underinsured motorist and you do not have uninsured or underinsured motorist insurance, collision insurance may be able to help cover some of the costs associated with the damages to your car.
Collision coverage will provide you with financial protection for damages to your car incurred through an incident with another car, an object, road surface, or even a person. (more…)