If you've only got $25,000 of coverage for property damage, for example, and hit a car that costs $70,000, you could be paying the $45,000 difference out of pocket.ģ. When considering how much liability coverage to buy, Christopher says it's important to keep in mind that you could be on the hook for anything that costs more than your coverage limit. You could hit a telephone pole and inside the telephone pole is AT&T's Wi-Fi wiring, and you're responsible for fixing that." The most notable covered item is other drivers' cars, but it also covers a wide variety of other things, Christopher says: "It could be a bicycle you hit, it could be a vehicle you hit, you can hit a fire hydrant and the water damages a house on the street. Property damage: Anything you damage that isn't a human being will be repaired or replaced with this coverage.It also protects you against potential claims or lawsuits, up to the amount of coverage you've selected. Bodily injury: This covers medical care and other costs for people you injure in a crash.These are both types of liability coverage-if you injure another person or their property (that is, you're liable for the damage), your insurance will pay for it, up to a pre-determined limit, after which you must pay the rest. Comprehensive: Christopher says the easiest way to think about comprehensive coverage is that it covers thing that don't arise from a collision claim. That's a lot: "fire, theft, vandalism, someone keyed the car or a rock hit the windshield, a tree fell on it, a flood, or a sandstorm ruins the paint."Ģ.That's any object, not just other cars: "If a shopping cart were to blow into your car, that would be a collision," Christopher says, "therefore the collision deductible would apply." Collision insurance applies whether or not you are at fault for the damage, and it only covers your vehicle damage you do to other drivers' vehicles is covered by property damage liability. Collision: This coverage kicks in if your car collides with another object. ( This is where the phrase "totaled" comes from.) Where the two plans differ is the types of losses they cover. If it needs repairs for a reason that's covered by your insurance, you pay for them yourself until you hit your deductible, and then your insurer pays the rest, up to the total value of the car. Collision and comprehensive coverage both cover physical damage to your car.
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