Auto Insurance
Coverages
What’s the Difference Between Liability, Collision, and Comprehensive Coverage?
Liability coverage pays for damage or injuries you cause to others in an accident, up to the policy’s limits, but it doesn’t cover your vehicle. Collision coverage helps pay for repairs to your car if it’s damaged in a crash, regardless of who is at fault. Comprehensive coverage can cover non-collision events like theft, vandalism, or weather-related damage to your vehicle.
How Do Deductibles Work in Auto Insurance?
A deductible is the amount you agree to pay out of pocket before your insurance kicks in to cover a claim. If your deductible is $500 and your repair costs are $2,000, you would pay the first $500 and your insurer would cover the remaining $1,500. Choosing a higher deductible can lower your premium, but it also means you’ll pay more upfront if you file a claim.
Questions to Ask your Agent
- How much will I pay out of pocket if I get in an accident? What is the tradeoff between a higher deductible and lower premiums?
- Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
- Are any discounts available such as good driver, multiple policy, student discounts?
- What’s the procedure for filing and settling a claim? Who do I call?
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