What types of auto insurance coverages are there?
A. Here are the three major types of auto insurance coverage: • Liability—Pays for accidental bodily injury (medical expenses, pain and suffering, lost wages) and property damage (property and auto) to OTHERS. Also pays for defense and court costs. State laws determine how much liability coverage you must carry, but you can always carry more than what the law requires. • Collision—Covers damage to YOUR vehicle caused by collision with another vehicle or object. • Comprehensive—Pays for loss/damages to the insured vehicle that doesn’t happen in an auto accident. This covers things such as loss by fire, wind, hail, flood, theft, vandalism, etc. Q. Why does it seem so expensive? A. Risk. Yep, one simple word sums it all up. According to Webster, risk is the chance of injury, damage or loss. Each of us is a collection of risks. These risks include our sex, age, driving record, marital status, vehicle type … you get the idea. Obviously, without a crystal ball, the insurance company doesn’t
