If you are just getting acquainted with the details of car insurance policies you might be a bit daunted by a great number of different options and obligations. Car insurance laws are not the same in all of the states, so for further details you’ll need to get familiar with the law of the state in which you are residing; this article will just give you a basic overview of different aspects of car insurance in order for you to get a general idea.
Liability insurance is meant to cover the cost of the property damage or injuries that are the insured party’s fault. Liability insurance will generally transfer on the person that is operating your vehicle at the time of the accident, unless that person is specifically excluded from your policy, or if that person shares your home address. People living with you need to be specifically named in the policy in order for them to be covered when driving your car. This type of insurance might not apply if you are driving another person’s car, instead you might be covered by their insurance.
Liability is meant to cover a number of costs. If you damage public property, for instance, it will recompense for the damage itself and it will cover any additional costs that that damage might have caused. If, on the other hand, you are guilty of causing injury to someone, your coverage is supposed to cover their medical expenses, as well as court expenses if the injured party decides to sue you. It usually comes in two types, combined single limit and split limit. The former type will cover both property damage and personal injury, while the latter will has separate sets of coverage for these two cases.
Liability coverage will usually apply to any cars that you might rent. It is usually the same with full coverage, but this is not a general rule. Full coverage premiums are influenced by the value of your car, this is why you might not be covered when renting a car as it might have greater value that your, originally insured vehicle, which might result in a loss for the insurance company. This is why rental companies usually offer their own insurance.
Full coverage is essentially a combination of collision, comprehensive and liability coverage. Even though it is called ‘full’ coverage, there are a lot of optimal elements to it, so you are still given quite a lot of flexibility with it. Collision coverage is rather self-explanatory, you are covered in case of a collision, regardless of whose fault it was. Comprehensive coverage covers pretty much everything else. It will recompense you in case that something beyond your control has happened to the car. This includes natural causes such as damage caused by hail or storms, as well as other causes such as acts of vandalism, attempted (or successful) theft, or anything other that might cause damage to your vehicle.