Liability and comprehensive auto insurance coverage both provide protection to drivers, but one type of coverage pays for claims made by the occupants of the other vehicle when an accident occurs and the other one pays for losses to the policyholder’s own vehicle.
Liability Auto Insurance Coverage
Liability auto insurance coverage protects the policyholder from being personally responsible for damages caused in an accident. It pays for claims made by the other driver and the occupants of his or her vehicle for medical bills and rehabilitation expenses. In some states, liability insurance coverage compensates accident victims for lost wages, as well as claims for pain and suffering.
Comprehensive Auto Insurance
Comprehensive auto insurance coverage is a type of physical damage protection. It pays for losses caused by an event other than a collision. This coverage pays out for damages caused by hail, wind, flooding. vandalism and fire. It also pays out when the vehicle is stolen and not recovered, if the car strikes an animal or in a case where flying gravel breaks the windshield of the vehicle.
A policyholder who is making a claim under the comprehensive part of his or her auto insurance policy must pay a deductible before the insurance company will write a check to cover the damages. This amount varies, depending on the amount the policyholder agreed to pay out of pocket towards claims when the policy was issued.