Car Insurance Coverage - April 1, 2008
When deciding to buy auto insurance, it is advisable to study what coverage is on offer. There are three types of coverage: liability, collision and comprehensive. Liability coverage deals with the cost to damages, medical expenses for injuries and lost wages of the third party when you are at fault for the accident. For collision coverage, the insurance pays the cost of repairs or the replacement according to its market value, when your vehicle is damaged during a collision, regardless of who’s at fault. In the comprehensive coverage, in cases where it is stolen or damaged by natural disasters, fire or flood, the insurance will pay for the repair or the replacement of your vehicle.