Car insurance is required for all vehicles in the United States. You’ll be asked to provide proof of insurance at the time of your annual car renewal. When deciding which personal automobile insurance policy is best for your family, it is important to be aware of the different coverage options that are available.
Non-commercial consumers looking for car insurance Newark DE typically have three different coverage options that can be combined or mixed and matched. They are liability, comprehensive and collision coverages.
Liability Coverage
Liability coverage is what protects the insured for accidents in which they are negligent. This coverage is often required by the state and must comply with minimum limits.
An example of this insurance coverage can be seen in the following scenario. If an insured driver fails to yield at a stop sign and impacts another vehicle driving through the same intersection (and that vehicle did not have a stop sign), the insured’s personal automobile policy liability coverage would respond to a claim by the other vehicle for damages to that other driver’s vehicle or personal injury.
Collision Coverage
While not explicitly required by law, the insured driver could also purchase collision coverage. Collision coverage would provide coverage for the insured’s vehicle damage in the case of an accident.
This coverage is subject to a deductible, but the insurer would have no obligation to pay damages for insured’s vehicle unless the damages were in excess of the deductible. Standard deductibles are five hundred dollars, but by increasing or decreasing the deductible, the insured could either decrease or increase their premium.
While collision coverage provides coverage for most “collisions,” there are some caveats. Typically, roadbed collision is excluded. Also, accidents caused by animals would be covered by a different policy: comprehensive coverage.
Comprehensive Coverage
Comprehensive coverage provides coverage for incidents that are not a collision. It also provides coverage in other situations, such as vandalism, theft or the aforementioned animal strikes. The carrier providing the coverage will detail a list of perils that are covered by this policy.
As with any insurance agreement, the coverages are subject to exclusions, limitations and conditions outlined in the policy. An insurance consumer needs to be aware of these provisions and how they may affect coverage. Consulting with an experienced insurance professional is important when reviewing coverage and determining which policy is right for your family. Also, it’s a good idea to compare quotes from different companies to determine which has lower premiums for similar coverage.
