What Is The Difference Between Liability, Collision, and Comprehensive Insurance Coverage?

Liability v. Collision v. Comprehensive Coverage

All too often, individuals and businesses approach our firm with questions regarding various types of insurance coverages for vehicles, and seek clarity regarding the differences between liability, collision, and comprehensive insurance policies. There are very important differences to note between the different types of insurance coverages, and they are described in detail below.

Liability Insurance: Liability insurance coverage is the standard auto coverage that protects other people and their property if you cause an accident. Liability insurance provides coverage for the cost of repairing any property damaged by a covered accident, as well as medical bills from the resulting injuries. Liability coverage is mandatory in majority of states (including Illinois, which imposes $25,000/$50,000/$20,000 minimum coverage, or $25,000 minimum coverage for injury or death of one person in accident, $50,000 minimum coverage for injury or death of more than one person in an accident, and $20,000 minimum coverage for damage to property of another person).

Collision Insurance: Collision insurance coverage protects your vehicle in the event of a covered accident involving a collision with another vehicle, and it will cover your vehicle regardless of who was at fault for the damage. Collision insurance includes damages caused by hitting another car, being hit by another car, hitting a tree or telephone pole, hitting a pothole, or colliding into a building. Collision insurance often has various exclusions, including collisions with animals, so if you often travel through rural areas, consider obtaining a comprehensive policy.

Comprehensive Insurance: Comprehensive insurance coverage protects against everything that collision coverage does not protect against (i.e. collisions with animals) and is often referred to as the “everything other than collision” coverage or “full coverage.” Comprehensive coverage also protects from vandalism, theft, fire, falling branches, hail, and other severe weather conditions.

If you have been involved in an accident, or have questions regarding insurance coverage you already have, or are in the market to obtain, contact the experienced attorneys at Ball & McCann, P.C. so we can counsel you in fully understanding the coverage you are paying a substantial amount of money in premiums to maintain.