Liability Vs. Comprehensive Auto Insurance - Which Do I Need?

Before you compare liability and comprehensive auto insurance, you should first realize the importance of maintaining both. How much insurance you need to have as a licensed driver varies from state to state, but no law says it's a great idea to drive a potentially lethal and expensive (relative to you) car around your hometown without any back-up plan in case the worst happens.

Liability car insurance comes into play after you hit a person, and this pays for the replacement of belongings in the other person's car, their medical bills (if it's your fault) and usually even your legal bills if the other party decides to sue you. In our ever more litigious society, it is really smart to be covered in case of a lawsuit.

Liability also gives you protection if passengers in your vehicle get injured in a case that's your fault. Also, there is property damage liability that covers you if you accidentally hit the neighbor's tree and knock it over. Both of these liability coverage plans take into account your net worth and how much you make to help legally limit how much an opposing party could ask for in court.

Since so many people really can't afford to keep a car running AND insure it, there are a lot of uninsured motorists out there. What you might not know is that there are also under-insured motorists that won't be able to fully cover you in case of an accident that is their fault. As such, uninsured driver liability coverage is a really smart idea.

Comprehensive insurance is the coverage that pays for auto repairs to your car if you get into an auto accident. This particular brand of (usually essential) car insurance coverage is called collision insurance. Usually with collision insure you also get to choose a deductible.

As an example, if you chose a $500 deductible then you would pay $500 of any auto repair you turn into your insurer. While it may be tempting to seek a higher deductible just to get a lower monthly payment, try to remember how much you can afford if you ever get into an accident. $500 is usually the most fiscally prudent amount.

Comprehensive auto insurance also covers you in cases that are considered to be "acts of God," such as a flood, fire, tornado or a huge tree branch falling on the roof of your shiny new pickup truck. Weird things like this happen all of the time to driver's across the country, so protect yourself. Get comprehensive and liability auto insurance.