Vehicle Insurance

Vehicle insurance is used to protect cars, trucks, motorcycles, and other vehicles. It is sometimes called auto insurance, car insurance, or motor insurance. In the most basic sense, vehicle insurance provides protection from losses that result due to a traffic accident. However, protection against non-accident incidents can be purchased as well (such as damage by fire or theft).

Vehicle insurance can cover any number of the following items:

• The vehicle.
 
• The policy holder.
 
• Third parties (other people and other vehicles).
 
• Fire and Theft.
 
• Injury to passengers.

Liability

Liability coverage is for property damage (done to other vehicles or property) and bodily damage (done to people). Each jurisdiction has its own minimum level of liability coverage that is required in order to legally operate a vehicle on public roadways. These minimum levels vary by jurisdiction and are oftentimes insufficient coverage if a major accident occurs.

Comprehensive and Collision

Comprehensive coverage (other than collision) provides protection, minus any deductable, against non-collision incidents. Most commonly this includes weather, animal impacts, fire, theft, and vandalism.

Collision coverage is accident protection. This insurance is used to offset repair costs a vehicle incurs that are the result of a vehicle accident.

Uninsured/Underinsured Motorist

This type of insurance provides protection if an at-fault party does not have enough, or have adequate insurance to cover the costs incurred that are the result of an accident.