Car insurance comes with a variety of terms, each referring to a different part of the policy. The most common terms are “liability” and “collision.” Both terms describe how insurance covers the damages of another person or vehicle. Collision insurance is the most basic type of car insurance, while comprehensive coverage is more comprehensive, covering everything from stolen goods to injuries. Although comprehensive coverage costs more, it can pay out more in the event of a collision.
Liability insurance is the most common type of coverage, and pays for the damages caused to other people or property. It is often called liability insurance, and it is necessary to have this coverage. Essentially, liability insurance covers the costs that you incur from a collision, as well as a person’s medical expenses in the event of injury. If you’re in a serious accident, you should purchase this type of coverage for both cars. A policy will also state who is covered, what the limits are, and what their duties are.
Auto insurance is mandatory in many states, including New Hampshire, but it’s also important to understand how much you pay. A policy is a contract between you and the insurance company, and a good idea to study it thoroughly. This way, you’ll know what’s covered, and you won’t be left with a policy that doesn’t cover the costs of a collision. In addition to the basic information, auto insurance includes deductibles, which apply to each claim. A higher deductible will lower your insurance costs, but a lower deductible will result in higher rates.
