Buckle Up for Part 2: The Big Three of Car Insurance
Welcome back, gearheads and everyday drivers alike! We talked about why car insurance is more than just a ticket shield, but now it’s time to crack open the hood and see what makes it tick. Get ready to learn about the three main types of coverage that form the foundation of most car insurance policies: Liability, Collision, and Comprehensive
When I was a young lad my family and I used to enjoy watching dirt track racing every Friday night. It was our Friday night ritual we would go watch a bunch of dirt track legends all battle it out for that picture in victory lane. The concession stand hot dogs were good too. Usually around midnight we would shake the red clay from our hair and head home. One Friday night as we were leaving the parking lot in our brand new Dodge Spirit, that my father worked his tail off to pay for, a lady swerved to miss a car missed the brake and hit us head on. Thankfully all of us were ok for the most part but our car was not. Then came the dreaded call on Monday to the insurance company. What happened, who was at fault, what damages are there, was anybody hurt, etc. When you purchase insurance all you receive is some paperwork and a promise, but when the worst happens that’s when insurance becomes real.
1. Liability: Your Shield Against Third-Party Mayhem
After the call to the insurance company it was determined that she was at fault because she had swerved into our lane.
This is where liability coverage swoops in like a superhero. It’s your financial guardian angel, covering the costs of property damage and bodily injury that you cause to others in an accident.
Think of it as a safety net that protects your wallet from getting pummeled by repair bills and medical expenses. In most states, carrying some level of liability coverage is mandatory, so it’s not just a good idea, it’s the law!
2. Collision: Protecting Your Ride When Things Get Bumpy
Let’s face it, sometimes even the most cautious driver can have a fender bender. Maybe you misjudged a tight parking spot, or maybe you encountered some rogue black ice. Whatever the reason, if your car gets bumped, scraped, or worse in a collision, collision coverage comes to the rescue.
This coverage helps pay to repair or replace your car, depending on the severity of the damage and your policy limits. It’s like having a built-in mechanic on call, ready to get your car back in tip-top shape.
3. Comprehensive: Your Guardian Against the Unexpected
Ever wake up to find your car mysteriously missing from your driveway? Or maybe a rogue baseball takes out your windshield during a little league game? Life happens, and sometimes bad things befall our beloved vehicles. That’s where comprehensive coverage steps up to the plate.
This coverage protects your car from a wide range of non-collision-related perils, including theft, vandalism, fire, weather events, and even animal encounters (think rogue squirrels with a windshield vendetta). It’s like a superhero with a diverse skillset, ready to tackle whatever unexpected challenges come your car’s way.
Stay tuned for Part 3!
Curious what makes your car insurance cost so much (or maybe not enough)? We’ll be talking about that in Part 3, so stay tuned! We’ll cover factors like your age, driving record, the car you drive, and even where you live. By understanding these factors, you can be a more informed consumer and ensure you’re getting the right coverage at the right price.
