Comprehensive Vs. Liability Auto Insurance

Comprehensive insurance covers your property, while liability insurance covers others for damage you cause.

Your auto insurance may include collision, comprehensive, personal injury protection, liability and/or uninsured or under-insured motorist coverage, according to carinsurance.com. Both comprehensive and liability insurance coverages are designed to protect you financially in the event of an accident, but the two have distinct applications and purposes.

Identification

Comprehensive insurance covers your vehicle for damage caused by incidents other than collision, according to carinsurance.com. Liability insurance is divided into bodily injury and property damage liability, and covers damage you cause to someone else's person or property.

Features

You determine your deductible on comprehensive insurance. The higher your deductible, the lower your insurance premium. Typical deductibles range from $250 to $1,000, but you can opt for no deductible or a higher deductible. Liability insurance coverage has no deductible.

Function

Comprehensive insurance covers damage to your vehicle resulting from hail, flood, fire or animals, as well as from theft, according to carinsurance.com. Bodily injury liability covers medical bills and lost wages resulting from injuries you cause to others. Property damage liability pays for damage you cause to someone else's property, including automobiles, houses and fences. Liability insurance also covers you for lawsuits, including "pain and suffering" damage, according to insure.com.

Significance

Comprehensive insurance is not typically mandated by state law, but if your automobile is financed, your lienholder will require that you maintain comprehensive coverage. Liability coverage is required by every state except New Hampshire, according to insure.com.

Considerations

Your maximum coverage for comprehensive insurance depends on the value of your vehicle. If you have a comprehensive claim for damage exceeding your car's worth, your insurance adjuster will determine the car's value and settle accordingly. Liability maximums vary. You choose your maximum liability coverage when you purchase your insurance policy. Consult your insurance agent to make sure you have sufficient liability coverage. If the damage you cause exceeds your coverage, you are responsible for the difference.

References

• Carinsurance.com: Insurance Coverage Definitions
• Insure.com: Minimum Levels of Car Insurance You are Required to Buy