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The different types of coverage for car insurance

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There are two major types of coverage for car insurance. The first is liability insurance. This insurance covers the insured driver from any claims put against them. This means that liability will protect the insured parties when they get it an accident that is there fault, but it only covers the other person's car. This means that if you have liability and you wreck your car in an accident that is your fault, then your insurance will cover the other person's car but not your own. This is extremely dangerous to have when people have very expensive cars. Liability tends to also work on rental cars as well. Meaning that if you get in an accident in a rental car and you are at fault, then your car insurance will still cover the other party's car - but not the rental. Liability is based on driver, and anyone else that drives the insured party's vehicle.

The second type of insurance is full coverage. This is generally more expensive then liability and allows the relief of knowing that in any type of accident, no matter who is at fault, the cost of the car will be covered by the insurance company. This is the reason why full coverage is so much more expensive. Full coverage may also contain other options such as fire insurance or destruction of property done in an accident. Full coverage, however, does not work when renting a car in most instances. Insurance companies do not allow this because the rental car may be worth 50,000 dollars while the car they are insuring is only a 10,000-dollar car. Therefore, many rental car companies allow the renter to purchase additional insurance.

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