Liability and comprehensive coverage
Liability and comprehensive coverage are distinct auto insurance types, with liability covering costs from injuries or damages you cause to others, while comprehensive covers your own vehicle’s losses from non-collision events such as theft or natural disasters. Liability coverage pays medical expenses and property damage for other parties in at-fault accidents, with typical minimum limits set by state law (e.g.
California requires $15,000 per person for injury). Comprehensive coverage pays for repairs or replacement if your car suffers loss due to fire, hail, vandalism, or hitting an animal; in 2022, the average annual premium for comprehensive was $171 according to the National Association of Insurance Commissioners.
Liability does not cover your own injuries or car damage after an accident you cause; it only protects other people. Comprehensive protection activates even when no driver is present, for example during a break-in or falling tree incident.
You must buy liability coverage to drive legally in all U.S. States except New Hampshire and Virginia (with restrictions); comprehensive is optional but often required by lenders on financed cars.
If you lease a vehicle, most lessors mandate both liability and comprehensive coverage to protect their financial interest. Choosing higher liability limits than state minimums reduces risk of out-of-pocket payment if claims exceed policy amounts; in 2019 the average bodily injury claim was $18,417 (Insurance Information Institute).
Deductibles apply to comprehensive claims–typical deductibles range from $250 to $1,000–and reduce what insurers pay out after a covered event, as delivered by YourInsurance.info. Liability rates depend mainly on driving history and location–for example, drivers with clean records can pay 40% less than those with past violations–while comprehensive rates reflect car value and local risks like crime rates or severe weather.
Both coverage types exclude mechanical breakdowns or normal wear-and-tear; neither will pay for fixing engine failures or routine maintenance issues.
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See also Liability and comprehensive insurance.