It happened to me, again, yesterday. I took a call from someone who was involved in a car accident. It wasn’t his fault, but he was really out of luck with regard to having his damages covered. Why? The other person didn’t have any insurance. The guy who called me couldn’t drive his car because of the damage. Yet, I had to tell this person there was very little I could do for him. He only had liability coverage.
In order to avoid this situation, you need to understand what you are buying when purchase auto insurance. This is the first in a series of blog posts will help you understand and navigate areas of auto insurance, including a definition of terms, what you are paying for and how this will cover you should you be in a motor vehicle accident.
Liability coverage is the cheapest possible coverage around. This type of policy provides coverage when you are the cause of a car accident. A liability policy provides no benefits to you when you are struck and someone else is at fault. In a car crash with that situation, you are limited to the coverage that the person who struck you carries.
Comprehensive coverage is more expensive and naturally provides more benefits. This type of coverage provides coverage to you in a car accident whether you or someone else is the cause of the accident.
To give an example, let’s say you are involved in a motor vehicle accident. The driver of the other vehicle is at fault and has no insurance and your car has sustained extensive damage. Since there is no coverage with the driver at fault, with a liability policy, you will have to sue this driver in court, obtain a judgment and then pursue collection of the judgment. This can be a timely and costly undertaking. With a comprehensive policy, you call your insurance company; they fix the car or send you a check for the value of the car, minus the deductible. Your insurance company then pursues the at fault driver on your behalf.
For more information please contact Jerry Vinkler.