Nobody can predict accidents. They can occur anywhere and by anyone. If you are at fault for an accident, it is important that you are covered adequately to take care of your losses as well those who have been injured in other vehicles. This is called liability insurance. This covers property damage, injuries of both parties and legal bills as well. More often than not, people tend to take a policy which covers minimal options so as to pay less money as premium. This can prove very disadvantageous if the accident is major.
Even if you are not at fault, the collision coverage will take care of the vehicle repairs or even if it is totaled. The payment is made after you pay a certain amount to the insurance company against the claim settlement, which is known as the deductible. This amount is different for each company and can be negotiated at the time of signing up for the policy. The best method is to increase the deductible amount which subsequently decreases the premium.
Comprehensive insurance cover is for damages which arise out of thefts, fire, natural calamities, etc. and does not include accidents. It covers any repairs which are a result of such happenings and usually a very small amount is paid out by the insurance company. If your car is old and the premium is huge, this can be ignored.
Supplementary liability insurance is an add-on to your existing liability insurance. It is optional and covers any liability to third parties as a result of an accident. In some cases, even if you are not at fault, you will be held liable for third party injuries and property damage. It is extremely useful if you are opting for a car rental when on a holiday or business trip. It can also cover the repairs, charges if the vehicle is to be towed, etc. Though in most cases, this is avoided as it is an additional charge; it is for your best interests.
In some states, the supplementary liability insurance is mandatory and hence, is offered by the company which sells the vehicle to you. If you require more information and help regarding choosing the best cover, you can always contact an auto accident lawyer. There are many options and you can choose the ones which you think are necessary.