The Difference Between Collision, Comprehensive and Liability Coverage

Three essential types of coverage in an auto insurance policy are collision, comprehensive and liability coverage. Here’s a breakdown of each of their purposes and benefits.

Liability Coverage

Liability coverage may provide crucial funds following an accident where you are at fault. It’s divided into two parts:

• Bodily injury liability coverage may cover medical bills and lost wages for people injured in an accident you cause.
• Property damage liability coverage may pay for repairs to another person’s vehicle or property.

Liability insurance typically does not cover your own injuries or vehicle damage. However, if the accident leads to a lawsuit, it may cover your legal defense fees, settlements and judgments.

Collision Coverage

Collision coverage can help pay for your car’s repairs or replacement if it’s damaged in a crash, regardless of who is at fault. This includes accidents with other vehicles or single-car incidents, such as hitting a guardrail or tree. Collision coverage may be required by your lender if you lease or finance your vehicle.

Comprehensive Coverage

Comprehensive coverage can step in when your car is damaged by events other than a collision. This can include fire, hail, falling objects, theft, vandalism or animal strikes. Like collision coverage, comprehensive coverage is optional but often recommended.

Get Covered Today

Our team at Oak Knoll Insurance & Tax helps Illinois drivers understand auto insurance and select the right combination of liability, collision and comprehensive coverage. We’re here to answer your questions and guide you through the process. Contact us today to get a personalized 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.