This liability insurance policy pays for any damage caused by anything other than a collision. Natural hazards and disasters are covered in this liability insurance rates policy.

Generally, on both of these liability insurance policies, you are not covered for your total loss. Usually, you need to pay a sum out of your pocket (called a deductible) before the insurance company will pay the rest. Also, the cost for replacement of parts coincides with the current value of those items. So, naturally the older a car gets, the less valuable it becomes, and your auto insurance policy reflects this.