In case you or someone you allowed to drive your car crash into something that someone else owns, it will be covered under property damage liability, the third piece of coverage. While it usually means damage to someone else's vehicle, it also covers mail boxes, fences, telephone poles, lamp posts, sign posts, and other buildings hit by your car.
Fourth is collision, followed up by comprehension. Collision pays for damages caused by colliding into another vehicle, while comprehensive will reimburse any loss to your vehicle that is by natural causes and not a collision with another vehicle or object, such as fire, hail, flood, and earthquakes. Collision insurance will cover damages to your own vehicle even if you were at fault for the accident. Both comprehensive and collision insurance are sold with a deductible; collision generally starts at $250 and can span up to $1,000 and comprehensive insurance ranges from $100 to $300. The higher the deductible, the less you'll pay out of pocket. In most cases, cars that are being financed must be covered under comprehensive and collision through the entire loan period.
Rounding out a basic car insurance policy is uninsured and underinsured motorist coverage, a way to cover yourself in case involved in an accident where another driver is at fault. If their car insurance policy doesn't provide enough money to cover damages to your vehicle, then your policy will kick in. This part of coverage also encompasses hit and run accidents where the other driver leaves the scene of the accident, and in accidents if hit as a pedestrian.
In most states, car insurance is required in order to drive legally. It helps to protect the people and things that are important to you as the driver. Without it, a person could be sued for thousands of dollars for damages or even have to pay for the funeral of a loved one without any assistance.
