Collision insurance pays for damage to your car after an accident, regardless of who was at fault. It will also pay for pothole damage. Comprehensive insurance pays out if your car is stolen or damaged by anything other than a car accident.
Which type of automobile insurance pays for damage?
Liability insurance covers you in the event you are in a covered car accident and it is determined the accident is a result of your actions. Liability insurance will cover the cost of repairing any property damaged by an accident as well as the medical bills from resulting injuries.
What damage does car insurance not cover?
Car insurance does not cover intentional damage, general maintenance, or damage caused by normal wear and tear. Minimum car insurance coverage does not cover the policyholder’s injuries or vehicle damage, either, only providing liability insurance to pay for injuries and property damage caused to others.
How does car insurance work when you are not at fault?
In most cases, your insurance company won’t have to pay for a not-at-fault accident since the other driver’s policy will cover your expenses. But if you’re hit by an uninsured motorist or you’re the victim of a hit-and-run, your policy might cover the damages depending on what types of coverage you have.
Will my insurance cover damage to another car?
Compulsory third party (CTP) insurance, also known as a ‘Green Slip’ in NSW, is mandatory. If the driver of your car causes an accident in which someone else is injured, it’ll cover the cost of the compensation claim. It doesn’t cover any damage to your car or to other people’s vehicles or property.
What is covered by car insurance?
It covers the repair or replacement of your vehicle for events including theft, collision, fire, malicious damage and weather-related damage. It can also cover the repair and replacement of any other vehicles that are damaged by your vehicle in an accident, and damage to property.
What happens if I damage someone’s car?
If you were at fault in the accident and the other driver suffered injuries or property damage, your insurance also would cover their damages. … As a general rule, car insurance follows the vehicle, not the driver. That means the owner of the vehicle would file a claim with their insurance to cover any damages.
Which type of insurance is best for car?
A comprehensive car insurance policy, on the other hand, covers both third-party liability and damage to your car. So, if you are looking for a basic plan with an affordable premium, a third-party liability plan would be an ideal choice.
Who pays an insurance premium?
What is it? A premium is the amount of money charged by your insurance company for the plan you’ve chosen. It is usually paid on a monthly basis, but can be billed a number of ways. You must pay your premium to keep your coverage active, regardless of whether you use it or not.
What are the 4 types of insurance?
Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.