Comprehensive coverage: pays for damage caused by most other causes, such as theft, fire, hail, etc. The key difference between UMPD and collision coverage is that the UMPD only covers damage to your vehicle caused by a driver with little or no insurance. By contrast, collision coverage applies to any damage to your vehicle caused by a collision with another vehicle or object, regardless of fault. Car insurance is used to protect you against expenses that you might not otherwise be able to afford if you are involved in a car accident.
It is possible to purchase more coverage protection than the minimum level of coverage required. Liability insurance coverage protects you only if you're responsible for an accident and pays for other people's injuries or damage to their property. It does not provide coverage for you, your passengers, who are your resident family members, or your property. Property damage coverage is also available, but it's standalone coverage and isn't required by law.
This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy. Liability insurance covers you in the event that you have a covered car accident and the accident is determined to be the result of your actions. If you have comprehensive car insurance coverage, but not collision coverage, it's worth considering the UMPD to at least be covered for vehicle damage caused by uninsured drivers. You can file a claim against your car collision coverage when your car is hit by an uninsured driver or in other situations that involve a collision, such as a single car accident.
Your car insurance deductible is the amount of money you must pay out of pocket before your insurance will compensate you. Insurance companies consider a number of different factors when determining the cost of their insurance. This type of coverage is an auto insurance requirement in some states, optional in several states, and isn't available in about half of the states. On the other hand, if you have a more expensive car or one that's relatively new, collision insurance can help you get back to where you were before your car was damaged.
If your car is destroyed (when the repair cost exceeds the value of the vehicle) in an accident, collision coverage will pay for the value of your car. Anti-theft and tracking devices on cars can make this coverage a little more affordable, but taking out this type of insurance can be expensive and may not be necessary, especially if the car is easily replaceable. When purchasing insurance, the Division of Insurance recommends that you seek advice from a qualified insurance professional.
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