Car Insurance: Liability vs. Comprehensive

If you're going to operate a car, most states require that you have car insurance. In some, the state will even tell you what type and how much insurance you should have. There are two main types of car insurance: liability and comprehensive. In states where you have a choice about whether you're going to have comprehensive insurance or not, it's important to understand what each type covers so you can make an informed decision. a car parked on the side of a road

What Liability Insurance Covers

Liability insurance covers damage you might cause in an accident (and injuries to the other driver or passengers). For instance, if you fail to stop in time and damage the bumper on the car in front of you, your liability insurance can pay for the damage you caused to the other vehicle. However, liability insurance will not cover any damages to your own vehicle. This means that if your front bumper was also damaged in the above accident, liability insurance is not going to pay for it.

What Comprehensive Insurance Covers

Comprehensive insurance is a great addition to a car insurance policy that includes collision and liability coverage. It covers damage to your car caused by things like hailstones, vandalism and even theft. This may also cover collisions with animals and stationary objects, like trees or fences.

Which Should You Choose?

Aside from the legal requirements of your state, which type of insurance is best for you? The answer depends on several factors, including how old your car is and how long you intend to keep it. With a very old car that you don't plan to keep much longer, liability insurance is usually more than enough. Also, if you happen to live in a high crime area, you might want to have comprehensive insurance to protect you in case of car theft.

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