When it’s time to get auto insurance, whether for the first time or when you’re changing policies, you’ve got a lot to consider. An auto insurance policy comes with many coverage options, and you need all the facts before you opt in or out of any of these types of coverage. The worst thing is when you think you’re covered for something, only to discover you’re not after having been in an accident. That’s why it’s important to understand the different liability coverages, collision insurance, and more.
So, what kind of insurance takes care of damage? Well, that depends on how the damage happens. If you’re at fault and you damage someone else’s property, then property liability insurance is what covers it. However, if that same accident also damages your car, it’s actually collision insurance that pays for the damage on your automobile. Further, if someone is injured in that car accident, bodily injury liability insurance will cover those costs. That part of your insurance also helps you with legal representation if the other person decides to sue.
As you can see, car insurance is rather complex. You can opt for the minimum legal coverage, the maximum an insurer offers, or something in between. Remember to consider roadside assistance, too, because nobody likes dealing with a flat tire or an empty gas tank alone. To find out more about auto insurance and to discover the gaps in your own knowledge, take this Health IQ quiz about basic auto insurance today.