Automobile Insurance Coverage for Damage to Your Own Car

Covering Damage to Your Own Car: Automobile Insurance Explained

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Question

If you have caused an accident, which type of automobile insurance would cover damage to your own car?

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Explanations

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A. B. C. D.

B

If you have caused an accident and you want insurance coverage for damage to your own car, the type of automobile insurance that would cover this is collision insurance.

Collision insurance is an optional type of coverage that pays for damages to your car in the event of a collision, regardless of who is at fault. It typically covers the cost of repairing or replacing your car, up to the actual cash value of your vehicle.

It is important to note that collision insurance does not cover damage to other people's vehicles or property, or bodily injuries sustained by other people in the accident. For that, you would need liability insurance.

Liability insurance is a mandatory type of coverage that pays for damages and injuries you may cause to other people and their property if you are at fault in an accident. It does not cover damage to your own car.

Comprehensive insurance is another optional type of coverage that covers damage to your car from non-collision incidents such as theft, vandalism, or natural disasters.

Term insurance is not related to automobile insurance. It is a type of life insurance that provides coverage for a specific period of time, such as 10 or 20 years.