What Different Types of Coverage in Your Car Insurance Policies Mean

Car insurance is an important facet of car ownership that must be dealt with along with the purchase of a car. It is the vehicle owner’s responsibility to sign under a certain auto insurance policy, as it is mandated by law in most states. Understanding what the different types of coverage is under a car insurance policy is important, as it will be a great factor in the creation of a strong protection for your finances in the event of any car trouble.

Coverage and Liability

Coverage is the catch-all term for everything that can be paid for by an insurance company. It can be damage, loss, or medical coverage for the one causing or the one receiving it. Liability, on the other hand, is the term for whatever is due to the unfortunate victim of an accident caused by the insured. This falls under bodily injury liability and property damage liability.


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