Step 1
COMPREHENSIVE INSURED: Comprehensive insurance protects against loss due to incidents like theft, flooding, and collision. This insurance covers all damage to your vehicle as well as the damage to the object you have hit. This insurance also covers damage to your vehicle if it is accidentally struck by another person. This insurance is the most comprehensive and required by most lenders if you are still paying for your car.
Step 2
COLLISION: Collision protects your car from damage caused by an accident. This could include hitting another object, or being struck by another object. This type of insurance does not cover damage from flooding or theft.
Step 3
LIABILITY COOVERAGE: This insurance policy is the cheapest. This insurance covers the damages to other vehicles if you are involved in an accident. This insurance will also provide legal defense for the injured party in the event of a lawsuit. You may not be able to purchase this type of insurance if your car payment is still ongoing. Most lenders want comprehensive insurance until your car is fully paid off.
Step 4
DEDUCTIBLE: The amount of insurance you must pay is called the deductible. This amount must be paid before an insurer will pay the insurance claim. The deductible is the lowest insurance cost.
Step 5
UNINSURED MOTORIST: This could apply to any of these insurance policies. This will cover the damage that you suffer from an accident in which the motorist does not have insurance, is without insurance, or has no money to pay for the damages. In some states, this may also cover hit-and-run damage. This coverage is highly recommended considering the potential for motorists to be involved in accidents without sufficient insurance to cover damages.