At Davidson Insurance Agency in Evergreen CO, we love eliminating the guesswork in insurance jargon. We want our customers to make informed decisions concerning their coverage options to protect themselves, their families, and their vehicles.
Most of you have heard the terms liability, collision, and comprehensive coverages when discussing car insurance, but what do each of those terms mean?
Liability
When you have liability insurance on your car, you have coverage that pays out if you are found liable for causing an accident. Liability pays for injuries and property damage of others when you are at fault, up to your coverage limits. However, it doesn’t cover any medical expenses for you or your passengers or repairs to your vehicle. You could say liability insurance is coverage you carry for the other person. So, when the other vehicle’s driver is responsible for your injuries and damage to your car, their liability would cover your medical and repair costs up to their liability limits.
Colorado law requires that you have minimum liability coverage on your car to legally operate a motor vehicle in the state.
Collision
Collision coverage allows you to repair your vehicle after an accident in which you collided with another car or object (like a tree or building) or run off the road and crash. With collision, there is typically a deductible that you pay before the insurance will cover any repairs. Your friendly agents at Davidson Insurance Agency in Evergreen, CO can discuss deductible options and premium amounts that best fit your situation and budget.
Comprehensive
When you have comprehensive coverage, referred to as “other than collision coverage,” you have insurance to financially cover your vehicle repairs when the unthinkable happens due to fire, flood, theft, hail damage, or a tree falling on your car. Comprehensive coverage covers almost every circumstance unless otherwise listed in the policy’s conditions. Like collision coverage, you must pay a deductible before the insurance policy pays for the rest of your vehicle repairs.
For More Information
To discuss your coverage options in-depth and determine what best suits your unique situation, call Davidson Insurance Agency in Evergreen, CO, at 303-674-3325 to speak to a licensed agent.
