Insurance as an indusrty has grown phenominally over the last few years and within that, car insurance is by far ther most commonly sought after. Car insurance is an important consideration, legalities aside. Car accidents, thefts and vanalisim etc are becoming more prominent in our society and replacing or repairing car damage can become a crippling expensive if there is no car insurance in place. To help you understand some of the fundamentals about car insurance, liability and collison insurance is explained below. Liability an collison insurance offers insurance coverage for two separate componets relating to accidents on the road.
You will find that in many places worldwide, liability insurance on its own is the minimum requirment by law, if car owners wish to drive on the road. This type of insurance refers to any car-inflicted damage as well as physical injuries you may have inflicted onto another party while on the road. Also refered to as third party insurance, this portion of liability and collison insurance offers valuable peace of mind that you are financially protected by covering the repair costs to the other vehicle and any third-party physical liabilities that have occurred as a result of the accident. More often than not you will still be required to pay an excess fee, but this is usually substantially lower than what the repair costs would be. This portion of liability and collison insurance does not however, cover the costs of any damages that may have occurred on your own car through the same accident. This is where the collison insurance portion comes into play.
Collison insurance means that any damages that have been inflicted onto your own car, as a result of an accident that was your fault or through theft, vandalisim and the like, will be covered for financially. If your car is beyond repair and needs to be written off, then usually your insurance company will pay out ther market value of your car. Liability and collison insurance is one of the most commonly chosen car insurance options, as it provides financial protection for the most important areas while still being offered at an affordable rate.