How does liability insurance differ from comprehensive or collision insurance? ?

Collision indemnification provides coverage regardless of the type of contingency, whether the insured driver hits another car or runs his car through the back wall of his garage. In states that have no-fault indemnification laws, it additionally covers the costs when the conveyance damage is caused by another driver. If the insured driver damages another car, collision coverage does not cover the rehabilitation costs for the other car. These costs are covered by liability (bodily and physical property damage) indemnification coverage, which is conventionally required by law.If an insured conveyance is vandalized, damaged due to natural causes like a hail storm or flood, or purloined then comprehensive indemnification coverage applies. Most policies withal provide coverage for damages caused by hitting or being hit by animals or birds.Whether required by law or not, most lenders require collision and comprehensive indemnification as a condition of financing. Rates charged for collision and comprehensive coverage vary predicated on age of driver, driving record, credit history and local car larceny rates.

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