How Much More Expensive Is Comprehensive than Liability Insurance?
If you own a car, or are thinking about buying one, then you probably know you have to have car insurance. Only a few states do not require it, but what they do require instead is proof that you can pay for any accident damages you inflict on others out of your own pocket. A few people here and there can afford repairs or hospital bills, but they would bankrupt the vast majority of us, so we need to have car insurance.
Two general components of car insurance are liability insurance and comprehensive insurance. Liability insurance is itself broken down into two parts: personal liability insurance and property liability insurance. Personal liability insurance will pay for medical bills stemming from an accident for which you are at fault. Property liability insurance will cover property repair or losses stemming from an accident for which you are responsible. Comprehensive auto insurance, on the other hand, will protect you should your car be stolen, for example, or damaged at a car show. The auto insurance policies will cost you, of course, but generally speaking, comprehensive car insurance will cost you more.
When you buy auto insurance, you select the level and amount of coverage protection that you want, or can afford. It’s a trade-off, really: the higher your monthly premium, the lower your deductible. So, if you get into an accident and it’s your fault, and you pay a lot of money every month for a low deductible, you will pay that deductible and then be relieved seeing the insurance company pick up the rest of the tab. Your strategy will have paid off. If you pay a low monthly premium and have a high deductible, you’ll really feel the bite when you have to cough up the first $5,000 the other party’s repair bill.
Generally speaking, comprehensive auto insurance is more expensive than basic liability insurance because it must cover the full price of your car should it be stolen or declared a total loss due to an act of nature. Policy prices vary from state to state and insurer to insurer, so be sure to check out all your options.
To learn more about comprehensive auto insurance and liability auto insurance, be sure to consult with an insurance expert.