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How Liability Car Insurance Differs From Collision Coverage

There are a lot of different auto insurance coverage types out there, each equipped with their own benefits and features. One way to decide which package to go with is to check out your state’s auto insurance laws.

Every state in the U.S. requires drivers to carry liability car insurance (except for New Hampshire, they’re still holding out.) Though state laws require we carry auto insurance, they only set a minimum. This isn’t exactly ideal. If you’re involved in a serious accident and only carry the minimum amount of insurance, chances are you'll be paying for damages out of pocket. After a traffic collision, when you’re left shaken, up and with a vehicle that closely resembles a tin foil ball, the last thing you’ll want to be thinking about are medical and auto body costs. When it comes to insurance, less isn’t always more.

In combination with liability car insurance, many drivers also carry collision coverage —to protect themselves, their passengers, and the people in the other car. Let’s a take a quick look at what liability car insurance and collision coverage can do, and why it’s a good idea to carry both.

Liability Car Insurance: A Brief Explanation:

Auto liability insurance covers the damages sustained by the other motorist, their passengers and their property (typically their vehicle) when you are the driver at fault in the accident. Liability insurance does not offer you any financial assistance after an accident, if you were at fault in the collision or not.

Collision Coverage: A Brief Explanation:

Collision coverage protects you and the other driver financially after an accident, regardless of fault. Not just that, but collision coverage will cover you in a single-car collision, too. This means that if you hit a mailbox, electric pole or even a fire hydrant, any damage to you and your vehicle is covered.

Accidents Happen

According to the Rocky Mountain Insurance Information Association (RMIIA), in 2013 alone there were 5.68 million police-reported traffic collisions, with 1.,59 million resulting in injury, and another 4.06 million resulting in property damage. While the Insurance Information Institute (III) found that in 2014 auto accidents on public roadways were the leading cause of work-related fatalities. These fatalities accounted for 23 percent of all workplace deaths.

Medical, auto-body and funerary costs are very expensive, and when you’re the driver at fault, you’re the one expected to meet those expenses, and rightly so. But meeting those expenses on top of your own can be tough. How can you pay for the cosmetic work of two vehicles plus medical costs and in the worst-case scenario, assist in the expenses of a funeral? That’s a lot to handle for one person, and the stress of it all would be overbearing.

Though the aftermath of a car crash is rough both physically and mentally, your insurance coverage can help carry some of that burden. That’s why bundling your auto liability and collision coverage is such a smart move. You’re doubly protected because you’re doubly insured.

We at CoverHound work to bring our customers the best insurance has to offer. Explore the different auto insurance packages offered in your area today with our online shopping and comparison tool.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.
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