The Differences Between Auto Liability, Collision, and Comprehensive Coverage

A crucial part of being a responsible car owner is having the proper auto insurance coverage. Navigating which coverages to choose can seem complex, but understanding the core types of auto coverage can help you select the best policy for your needs and budget.

Auto Liability Coverage

Auto liability coverage helps pay for property damage and bodily injury to others if you’re at fault in an accident. It is required by law in most states, including North Carolina. It does not, however, cover the damage to your own vehicle. Auto liability consists of the following:

• Bodily injury liability—This covers medical costs and legal fees if you injure someone in an accident for which you’re found at fault.

• Property damage liability—This covers repairs to another person’s property in an accident for which you’re found at fault.

Collision Coverage

Collision coverage helps pay for damages to your vehicle from a collision, regardless of who was at fault. This can include accidents with other vehicles or objects, such as a guardrail or tree. This coverage is typically optional, though some auto lenders may require it. Collision coverage involves a deductible, which is the amount of money you must pay for repairs before the coverage kicks in. It’s ideal coverage for new or financed vehicles.

Comprehensive Coverage

Comprehensive coverage helps pay for damages to your vehicle from noncollision incidents, such as the following:

• Vandalism

• Weather-related damage (hail, floods, wildfires)

• Animal strikes

• Theft

This coverage is optional, but is typically bundled with collision. There is a deductible for this coverage.

Contact Us

When choosing the appropriate auto insurance coverage for your vehicle, it’s important to understand your core options. Collision and comprehensive coverage may be optional in many cases, but they can offer you valuable financial protection. The team at Stowe Insurance in Belmont, NC can help you find the right policy for your needs and budget. Contact us today for a personalized quote or more information.

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.