The Difference Between Liability, Collision and Comprehensive Coverage

As a responsible motorist, you’re likely aware of the importance of auto insurance. However, understanding all the various facets and options within available policies can be complicated. At Lord & Associates Insurance Agency, our dedicated team has the knowledge and experience to help you understand key aspects of auto insurance and how they can equip your policy with ample financial protection.

What Is Auto Liability Coverage?

Liability coverage is often the sole component of the most basic auto insurance policies. Nearly every state, including Georgia, legally requires at least some form of liability coverage. This part of your policy is critical and can help you avoid lawsuits and out-of-pocket losses should you be responsible for an accident that affects other parties. Specifically, it may consist of the following:

• Bodily injury liability coverage can help cover other parties’ medical bills and losses if they’re injured in an accident for which you’re responsible.

• Property damage liability coverage can assist with third parties’ repair and replacement costs if you’re liable for an accident that damaged their property.

What Is Collision Coverage?

While liability coverage is focused on covering other motorists, pedestrians and third parties, collision coverage is intended to protect your own vehicle financially. If you’re involved in a crash involving another vehicle or stationary object, such as a building, signpost or guardrail, this part of your policy can help pay for repairs. Similarly, your coverage could help pay for a new vehicle if your car is totaled. While collision coverage is not required by law, lenders may mandate coverage if you have an auto loan.

What Is Comprehensive Coverage?

Like collision coverage, this aspect of auto insurance can assist with losses and damages involving your own vehicle. However, while collision coverage can financially protect against crashes, comprehensive coverage primarily focuses on other incidents. Specifically, you may submit a claim against this part of your policy if your car is damaged by fires, theft, vandalism, floods or incidents involving wildlife. Lenders may also require comprehensive coverage as long as your auto loan remains outstanding.

We’re Here to Help

Contact Lord & Associates Insurance Agency in Covington, Georgia, today to learn more about auto coverage options or get a free quote.

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.