Liability, Collision, and Comprehensive: What Each One Covers

Liability cover pays for injuries and property damage you cause to others. It is legally required in most places, with minimum limits set by law. Many experts suggest limits well above the minimum, since serious accidents can be very expensive.

Collision covers damage to your own car from an accident with another vehicle or object, regardless of fault, subject to a deductible.

Comprehensive covers damage from non-collision events such as theft, vandalism, fire, falling objects, hail, flood, and animal strikes.

If your car’s value is low, the cost of collision and comprehensive cover plus the deductible may be close to what you would receive. Compare premiums with the car’s value.