Buying suitable insurance for your vehicle can be confusing because there are several different types of policies available in the market. Let’s talk about auto insurance and its exclusive features.
Vehicle Protection
Damage to your car is covered under auto insurance. Like liability, it's split into two areas.
The first is collision, which covers repairs or replacement of your car because of a crash, up to your car's actual cash value, which is the car's value after taking into account depreciation and wear and tear.
The second is comprehensive coverage is for damages to your car for things other than accidents. This includes storms, vandalism, or striking an animal on the road.
Liability
If you're in an accident, this protects you from liability you might face from the other parties in the accident. It's divided into two areas: First is bodily injury, which covers medical bills, loss of income and legal bills. If you don't have enough liability coverage, you might have to dip into your savings to pay off big bills from lawsuits.
