Comprehensive vs. Liability Insurance: What You Need to Know
It’s a dangerous world out there in the car. Without the right car insurance, you could wind up paying outrageous sums of money if you’re ever involved in an unfortunate auto accident. So how do you know which insurance you need? Here we discuss comprehensive insurance and liability car insurance to help you figure out what kind of car insurance is right for you.
Naturally, you want to make sure that your vehicle is covered in the event that your car is involved in a collision. But did you know that there are arrays of accidental circumstances in which your car can be damaged without actually being in a collision? Vandalism, theft or attempted theft, fire, and unexpected weather phenomena such as hurricanes can all cause major damage to your automobile. To safeguard against this, you’ll need comprehensive insurance. (This type of insurance can also be referred to as “other than collision” insurance.) Comprehensive car insurance protects your car from all accidents that are out of your control, or anyone else’s for that matter. Hail storms, floods, bored teenagers with destructive tendencies – any of these can wreak havoc with your automobile, and comprehensive auto insurance covers them all.
This liability insurance, on the other hand, definitely involves collisions – the ones that you are responsible for. If you’re at fault accident, you could be held liable for damage to either property (which includes the other driver’s car as well as any inanimate objects such as trees, etc.) or other people’s bodies. Liability insurance is so important that it is required in most states in the USA, and the law establishes minimal limits for this coverage.
You want to get the highest level of liability assurance that you can afford, to protect yourself in case you’re in an accident with a car full of people or an expensive luxury automobile. Check to see whether liability insurance policy features “combined single limit” or “split limits.” Combined single limit insurance means that all of the costs are taken from a single limit amount, so all of the injury and property damage charges are considered together. In the case of combined single limit insurance, the higher your limit, the better. Split limits means there are separate limits for property damage and personal injury. If you have split limits, you have to make sure that each limit is at a level you can be comfortable with.
These days, it’s simple to shop around for car insurance quotes online. There are dozens of sites out there that allow you to compare quotes from different companies in one place. Rates can vary widely, so make sure you do your due diligence since it will pay off when it comes to your monthly bill.