Liability vs. Comprehensive Insurance

For starters, liability insurance, is the type of insurance that will cover the cost to repair damage that is caused to the owner of the vehicle. It is typically the minimum automotive insurance that the state requires. If there's a financer for your vehicle you may be required to purchase extra automotive insurance until you've finished paying off the vehicle.

Is there a difference between liability automobile insurance and comprehensive automobile insurance? Do both of them cover everything? Actually, liability automotive insurance and comprehensive automotive insurance are very different.

Liability automotive insurance covers the extra expenses to repair damages to your automobile that ooccur as a result of an accident caused by you. If repairs to your vehicle cost more than the value of your vehicle, the automotive insurance company may decide that your vehicle is a total loss. In that case you will be compensated for the cash value of the vehicle at the time of the accident.

Comprehensive Automotive Insurance Is Typically More Expensive

Because of its extra automotive insurance options available, the cost of comprehensive insurance is generally higher, being that the automotive insurance company is paying for damages that are caused by their own policy holder.

On the other hand, comprehensive automotive insurance is insurance that will cover the cost to repair damages to your vehicle that result in an accident for which you are not at fault. The damages may range from incidents caused by floods, tree falling, theft or vandalism, damages caused by fire, and deer running onto the road and striking your vehicle. Comprehensive automotive insurance compensates you for the total cost of your vehicle before the damage occurred.

Many people will decide to buy only liability insurance since typically it is the only insurance that is required. You may decide to pay extra for additional automotive insurance coverage available. One never knows when the unforseen may cause damage to your car, whether it be a deer crossing into the road or any other object that suddenly appears in your path of travel and causing damage to your vehicle.