The Duality of Purpose of Car Insurance

by Admin on January 31, 2012

Car insurance has a duality of purpose; it is designed to protect you as the insured and to protect those that you as the insured may hit. The duality of car insurance can be seen in 1) liability only insurance and 2) full coverage car insurance.

Liability Only Insurance

Liability insurance is the type of insurance that is required by law. Most areas of the world have some sort of insurance requirement in place to keep people from driving without protection. Liability only insurance is insurance that is designed to protect other people and vehicles that you as the insured may hit. Liability insurance doesn’t cover you or your vehicle; instead, it covers others.

Example: As you are driving on the road, you hit a patch of ice and crash into the vehicle in front of you. Your car and the car you hit sustain damage. Your liability only insurance will repair, free of charge to you, the person’s vehicle you damaged. It will not, however, repair any damage to your vehicle.

Full Coverage Insurance

In the example above, if you want to get your property protected, you need more than just minimum insurance. You need a type of full coverage insurance. Full coverage insurance is what protects you and your property. There are two very important parts to full coverage; comprehensive and collision.

Comprehensive. Comprehensive insurance is designed to insure your vehicle from damage it may incur as result of anything other than collision. This insurance is sometimes even referred to as other-than-collision insurance. It covers just about anything that can happen to a car that is not collision related. Wind, snow, falling objects, theft, vandalism, and more.

Collision. In addition to comprehensive insurance, collision insurance is provided to help insure your property when you are involved some sort of collision. Collisions can have very drastic effects on vehicles, and this coverage makes sure you don’t go without protection. Whether you are involved in a collision with another car or a random object, collision coverage should insure your loss.

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