What are the different types of coverage in an insurance policy?

In California, an insurance policy typically covers four basic types of coverage. These are liability, collision, comprehensive, and uninsured/underinsured motorist coverage. Liability coverage protects you if you accidentally cause physical damage to someone else’s property or if you cause injury to someone else. It will pay out a certain amount if you are found legally responsible, up to the limits of your policy. Collision coverage is used when you are in an auto accident with another vehicle or an object, such as a tree or a wall. It pays for the cost of repairs to your vehicle, up to the limits of your policy. Comprehensive coverage pays for damage to your vehicle if it is caused by something other than a collision, such as theft, fire, flood, or vandalism. Uninsured/Underinsured Motorist coverage pays for medical bills and other expenses if you are hit by a driver who does not have enough insurance to cover the costs of your injury. No matter which type of coverage you have, be sure to read the details of your policy carefully so that you know what is covered and what is not. It is also important to shop around for the best rates since different insurance companies offer different rates and coverages.

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