Business Math

If your vehicle is involved in an accident, it can cause bodily injury to the people involved, property damage to other vehicles or property, such as light poles, and collision damage to your vehicle. Vehicle owners carry insurance to cover the costs associated with an accident.

Liability insurance coverage provides financial protection to the policyholder against claims for bodily injury and property damage as a result of an accident

In addition to liability insurance, you also will need to consider carrying two other types of insurance on your vehicle. Collision insurance pays for damage to the insured vehicle caused by a collision with another motor vehicle or an object such as a telephone pole. Comprehensive insurance pays for damage to the insured vehicle from losses due to fire, vandalism, theft, and just about any cause other than a collision

Both collision and comprehensive insurance may have a deductible clause. This is a clause in an insurance policy that requires the insured to pay a certain amount to cover repairs before the insurance company pays. For example, if your insurance policy states that you have a $500-deductible clause, this means that you pay the first $500 of the repair bill. If your total repair bill is $4,400, you have to pay $500 and the insurance company pays the remaining amount ($3,900 in this example).