The Difference Between Liability, Collision, and Comprehensive Coverages

Auto insurance plays a vital role in helping you manage the financial risks associated with accidents, vehicle damage and liability on the road.

Liability, collision, and comprehensive coverages are three key components of auto insurance. Each serves a different purpose, and knowing how they work may help you make more informed decisions about your auto insurance policy.

What Is Liability Coverage?

Often required by state law, liability coverage is designed to help cover costs if you are held liable for injuring someone or causing damage to their property in an accident. It typically includes the following:

• Bodily injury liability may help with costs such as medical treatment, lost wages, or funeral costs for individuals injured in an accident involving your vehicle.

• Property damage liability may help cover the expense of repairing or replacing another person’s property, like a car, fence, or building, if it’s damaged in an accident.

It’s important to note that liability coverage doesn’t pay for your own injuries or damage to your vehicle.

What Is Collision Coverage?

Collision coverage may help pay for repairs or replacement if your vehicle is damaged in an accident involving another car or a stationary object, such as a tree, pole, or guardrail. This type of coverage typically applies regardless of who caused the accident. While not legally required in most states, some lenders require collision coverage if you lease or finance your vehicle.

What Is Comprehensive Coverage?

Comprehensive coverage is designed to help with damage to your vehicle caused by events other than a collision. This might include:

• Theft or vandalism

• Fire or natural disasters

• Falling objects or animal-related incidents

Like collision coverage, comprehensive is usually optional but may be required by a lender or leasing company.

Auto Insurance in Fruitland, MD

The right mix of coverage depends on your vehicle, budget, and risk tolerance. The team at MANN & GRAY Insurance Associates can review your coverage to check you’re financially protected against unexpected events on the road. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.