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Picking the right type of car insurance coverage in Alabama can directly influence what happens after your involvement in a car accident. Many factors may impact the type of coverage you choose including the make and model of your vehicle, your experience with driving and where you live.

Understanding the differences between comprehensive and collision insurance can help you make a confident decision when selecting an automobile insurance policy.

Defining your risk level

You could face more risks than other drivers depending on your driving habits or the area where you drive. According to NBC News, contrary to what 68 percent of Americans believe, comprehensive insurance is not as comprehensive as you would think. This type of insurance covers damages when something happens to your car other than a collision. Examples include damage from a fire, theft or inclement weather among other things.

Collision insurance helps cover damages your car sustains in an accident. This could include collisions with a tree, another vehicle and even a guardrail. Liability insurance is a legal requirement. This type of insurance provides support to victims who sustain serious bodily injury or property damage resulting from a car accident where you are at fault. Comprehensive and collision insurance are both optional.

Knowing your policy

One of the biggest mistakes that many people make with automobile insurance is not knowing their policy and what it covers. When you invest in car insurance, make sure you understand what coverage you have and under what conditions it works.

If you need to update or change your policy, verify that the changes have not altered the function of your insurance. Making sure you have adequate insurance prior to an accident can provide protection, comfort and relief if you do get in a car crash.