Liability, Collusion And Comprehensive Explained

Liability, Collision and Comprehensive Car Insurance Explained

Car insurance is one of the most widely bought insurance in the world. It ensures your ability to cover the costs of potential damages to one’s car, property and any other costs as results of an accident. Following are some of the most preferred car insurance policies.

Liability Car Insurance Policy:

As a driver, it is imperative for you to have liability car insurance coverage. Under this policy, the insurance company covers any type of damage or bodily injuries that you may cause to others during an accident. This policy does not protect you or your car directly as it does not cover the repair costs of your vehicle. It will help you only if you cause an accident that injures other people. It defends you against their claims pertaining to the costs incurred, lost wages, medical expenses and other losses.

Property damage (PD) liability coverage covers any damage caused to the property of other people up to the declared amount provided by the policy (i.e., broken glass, a crushed fender or a damaged fence or wall). Your insurance company will pay for this damage in two cases as follows:

• If you were driving your vehicle or
• Your vehicle was being driven with your consent by some other named driver in your policy.

Property damage liability also pays on your behalf if you damage any kind of public property such as a signpost or light pole, up to the limit you opt for.

Collision Car Insurance Policy:

This is perhaps the most common car insurance policy. Under this policy the insurance company will pay for the repair costs of your vehicle unless it was caused on purpose. If your vehicle is damaged beyond repair, the insurance company will pay you the vehicle's existing market value in cash.

Comprehensive Car Insurance Policy:

This is a very expensive, but beneficial and essential insurance policy that pays you for all the expenses resulting from any vehicle-related accident. It covers the following costs:

• Third party vandalism, fire and theft risks
• Personal accident or damage caused due to natural disasters
• Accidental damage to your vehicle
• Irreparable damage to your vehicle
• Glass replacement (sunroof, wind-screen and windows)
• Damage to or loss of personal property that is carried in your vehicle, to a certain limit
• Medical expenses, to a certain limit