There are three primary types of insurance coverage: Liability insurance: Covers the costs associated with injuries and property damage you are responsible for if you cause an accident. Collision: Covers the costs to repair or replace your damaged or destroyed vehicle after an accident. Comprehensive: Formally known as “other than collision,” this portion of a policy covers damages to your car caused by something other than a collision, such as fire, theft, vandalism, hail or flood. Comprehensive car insurance also pays for damage caused by hitting an animal.
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