When choosing an auto insurance policy, understanding the different types of coverage is essential. Liability, collision and comprehensive coverage each serve a specific purpose. Knowing how they work together can help you build a policy that fits your needs and budget.

Liability Coverage

Liability insurance is required by law in most states and forms the foundation of a standard auto policy. It’s designed to help cover the costs if you’re found legally responsible for an accident. It typically includes the following components:

• Bodily injury liability may assist with medical expenses, lost wages or legal fees if another person is injured in a crash you caused.

• Property damage liability may help pay for repairs if you damage someone else’s vehicle or property.

It’s important to note that liability coverage does not apply to your own injuries or vehicle damage.

Collision Coverage

Collision insurance is optional in most states but is often required if you lease or finance your vehicle. This coverage may help pay to repair or replace your car if it’s damaged in a crash, regardless of who was at fault.

Whether it’s a rear-end collision or a single-car accident involving a curb or guardrail, collision coverage can come in handy when damage occurs from impact.

Comprehensive Coverage

Comprehensive coverage applies to damage that isn’t the result of a crash. This includes incidents like theft, vandalism, falling objects, fire, hail and collisions with animals.

If your car is broken into or hit by a tree during a storm, comprehensive coverage is the part of your policy that may help with repair or replacement costs.

Learn More

Luna Insurance Agency can help you review your current auto policy and decide how liability, collision and comprehensive coverage fit into your overall plan. Contact us at our office today to schedule a policy check-in and get answers to your coverage questions.

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.