Collision coverage helps pay for the repair or replacement of your vehicle if it is damaged or destroyed in an accident with another car, regardless of who is at fault. That's different from liability coverage, which helps pay for damage to someone else's car because of an accident you cause. Comprehensive and collision coverage are separate physical damage coverage options, which generally include separate deductibles. This differs from liability insurance, which has no deductibles for either party when a claim is filed.
The deductible is the amount you must pay out of pocket after you file a claim. You can choose your deductible based on the options offered by your insurer, which may be the same for all risks and for collisions. Generally, the higher the deductible, the lower the premium. However, you'll have to pay more out of pocket with a higher deductible if you have to use any of the coverages.
Collision insurance will help you pay for the costs of repairing or replacing your vehicle, even if you've had an accident with an uninsured driver. However, driving alone with liability insurance can result in costly bills for your own property or injuries, which are not covered by exclusive liability insurance. Liability insurance is the least expensive car insurance because it provides minimal coverage. Having a comprehensive policy may provide coverage for some physical damage scenarios, but you won't have coverage if your car is damaged after hitting another car or object.
Learn more about liability insurance and get help deciding which car coverage is right for you with these car insurance resources. When requesting car insurance quotes, it can be useful to compare the different levels of deductibles to see how they affect your overall premium. For example, if you have an exclusive liability policy and you cause an accident, your car insurance won't pay for the repair of damage to your vehicle. And if your car is leased or financed, your lender will likely require you to take out collision and comprehensive insurance.
All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer. State law never requires collision insurance, but dealers and banks often require it for leased or financed cars. While some call them “collision insurance” and “comprehensive insurance,” these options aren't individual policies, but coverage options that you can add to an existing car insurance policy. Liability-only car insurance means that you only have financial protection for the other party if you cause injuries or property damage in an accident where you are at fault.
Liability insurance protects the insured against claims for property damage or bodily injury in the event of an accident involving another person or property. Liability insurance is car insurance that covers damage or injury to a third party's property in the event of an accident. Collision insurance repairs or replaces the insured car if it is damaged, either by another vehicle or by an object such as a tree or a mailbox. The only car insurance required by law is liability coverage, for damage to someone or something that you accidentally collide with your car.