States typically require drivers to purchase liability coverage, and this is because drivers may be held financially responsible to others for the damage they cause behind the wheel. Liability coverage will not compensate the driver for damages to his or her own vehicle or pay for any of the driver’s other expenses related to a collision or accident. Instead, this coverage will compensate other parties for damages the driver causes. This may include vehicle repairs, medical bills, and damaged personal property. Drivers may also be required to provide proof of liability coverage when pulled over by law enforcement for a traffic violation.

Most auto lenders require vehicle owners to maintain collision coverage on their car. This is coverage that will pay for repair costs to the driver’s vehicle in the event of an accident. However, it will not pay for damages related to weather-related damage, theft, or other events. Comprehensive coverage is another option available, and it covers the driver’s damages related to many other types of events. You can also opt to add other coverages to your policy, such as personal property coverage, towing coverage, and more.

In addition to the premium that you will pay regularly to maintain your coverage, you will also need to pay a deductible when you file a claim. The amount of the deductible can typically be adjusted by the driver. As the deductible increases, the premium generally decreases. This provides drivers with greater control over their premium costs. However, because you will need to pay the deductible when filing a claim, ensure that the deductible is affordable for you to pay when needed.