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Liability or Comprehensive Coverage: Which One Is Right For You?

Having car insurance is a requirement in all states. Shopping for coverage can be a daunting task given the variety of options to choose from. Two types of coverage that you can choose from include liability and comprehensive coverage. But which one is right for you? You need to choose the one you’d rather have and suits your individual or family needs.

Before determining the right one for you, let us look at what each type of insurance covers. Liability coverage does not shoulder damages to your own vehicle in case of an accident. It pays for damages done to other vehicles that you are legally required to cover. If you got involved in a traffic accident where you were deemed at fault and caused damaged the other car, you can use liability insurance. However, it does not have a deductible so you will not have any out-of-the-pocket expenses.

On the other hand, comprehensive coverage shoulders damages done to other vehicles. It also shoulders damages to your own vehicle, not just from traffic accidents but from natural sources as well. With comprehensive insurance, you will have to choose a deductible so you have to shoulder some of the damage from your own pocket. Bear in mind that liability coverage may be included in comprehensive coverage.

As to the question of which coverage is better? It will all boil down to what you need and your budget. The monthly cost for liability coverage will surely be less than that of comprehensive coverage. So you have to look at the additional benefits of comprehensive coverage.

If your car was completely totaled, could you handle the remaining debt and pay from your own pocket and buy a new car to replace the old one? If you have an old car that has already been completely settled, your best choice is liability coverage.

If you have paid for any car and have a huge need for emergency money, liability coverage is also better. With huge savings, you would be able to handle the cost of a replacement vehicle. This way, you would not have to choose the comprehensive insurance. Another advantage of liability insurance is that if you rarely use your car and can afford not to have it, you can do away with the comprehensive insurance.

In most instances, comprehensive is probably the better option.