Car Insurance Coverage

Not all types of car insurance will offer full financial protection in the event of an accident. Not only do many insurance policies include a deductible, the amount of protection and type of protection is also based on the car insurance coverage. Generally speaking, there are 3 types of car insurance coverage in the United States. An insurance policy will be liability, collision, or comprehensive. With a liability policy, the insured party is covered in cases where they have been charged with the liability of another person because of an accident of their doing. Collision insurance coverage, which is a step up from liability, extends coverage to both the insured's vehicle and other vehicles, usually packaged along with liability coverage. Comprehensive coverage covers non-accident obligations such as theft or vandalism, and usually comes packaged alongside the two lower levels of liability and collision.

Fast Facts

  • 63 percent of accident injuries are paid for by car insurance coverage
  • uninsured motorist coverage protects the driver against another motorist who is driving without insurance

car insurance coverage - Financial Planners, Articles and Q&A

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