Comprehensive vs. Liability Car Insurance: Which Should You Buy?
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the umbrella point is one most people miss, a lot of companies wont even sell you the umbrella until your auto limits are maxed out, so the liability only debate gets decided for you
yeah what Elon Musk said get rid of root of eveil
What I have found is, another driver ran into my car as I was driving across the street which ran parallel to the trains tracks I had just passed over. The other driver admitted causing the accident to the police. I reported it to my insurance carrier, I was told that I was on my own and they would not talk to me since I only had liability. The other drivers insurance company got the report, but kept blaming me for the accident. I don't see why my carrier wouldn't do anything to assist me, they weren't going to have to pay anything. I dropped them as soon as that policy was over. I know that if somebody else hits my car, get a lawyer and sue for as much as I can.
Can you even have comprehensive without liability?
Umbrella for us is $1M for $250/year premium with Travellers. Great value, great company
I keep Comprehensive AND Collision on my vehicles. I don't want to self insure replacing my vehicle if I get into an accident that gets deemed at fault.
Comprehensive covers acts of nature (tree falling on your car ,hail, hit a deer, etc… )
Collision covers your vehicle when you are in a crash with another vehicle or object where you are at fault.
Liability coverage pays for damage YOU cause to other people and property in a collision.
If you have liability only and a tree falls on your car an totals it, your insurance won't pay you a cent… likewise if you have liability o ly and you serve to avoid colliding with another vehicle and instead hit a ditch or barrier your I esurance won't pay anything. YOU will pay out of pocket to fix your car.
You should only have liability only if it's a clunker….
With how expensive cars are getting these days, I recently bumped up liability from 50k to 100k.
What safe haven do you recommend in the event of US government default? Is there one?
is there any way to insure against major repair needs like an engine replacement? Most insurance does not cover the most costly fixes which is so annoying.
A couple important notes:
In most places, Liability coverage is legally required and not optional.
Comprehensive is optional but does not cover damages to your vehicle caused by a collision. (Mostly for damages from weather/ natural causes)
Collision is the coverage that seems to be being described in this clip and is for your vehicle damages caused in a collision regardless of fault.
Full Coverage does not mean you have every possible coverage or the highest available limits. It only means you have liability and collision which can be misleading.
In summary: Make sure you understand each coverage you are purchasing since there are many misconceptions in the world of auto insurance. You don’t want to find out that you don’t have what you thought you had AFTER a crash happens. Many add on coverages like Rental are also pretty affordable and can be game changers if you end up needing them.
Be safe out there!
I always carry comprehensive, even when I drive a 10 year old car. Price goes down as the car gets older anyway. If you only have liability and in an accident where the other is at fault, you have to work with the other person's insurance company. Big PITA factor.
I got smacked into this past winter. Told my insurance company that I want to work through them and willing to pay the deductible. I took my car in the same day of the accident. I had my car back in two weeks. Insurance companies fought over who was liable, but I had a working car while all that was happening. Multiple weeks later, they finally settled and I got my deductible back. Also carry the rental car reimbursement — low PITA factor to have this done while your car is being repaired.
And if your car gets stolen? You need to replace it. Also, Uninsired and underinsured motorist coverage is extremely valuable if someone hurts you. Where I live, about 1 in 3 drivers are uninsured.
Insurance companies dont care if you have full coverage on your car or not for an 'umbrella' policy. The insurance company WILL require you to carry higher liability limits on the underlying home/auto policies to qualify for an umbrella.
Best question to ask your agent: How much are the next level of liability coverage? Usually people don't know that going from $500,000 to $1,000,000 of liability on your home is generally less than $5 more a month.
Some state requires you have have a minimum amount liability.
I have all old cars and still keep comprehensive, because it also covers window cracks and minor things like that. If a window gets cracked by a rock, a $250 deductible is all I have to pay. And when you have old cars, comprehensive isn't that much more expensive! The only bad thing is that any kind of wreck, the insurance company will total your car. Then you have the choice of letting it go for a higher price than you can get in the used market or continue to drive it with just liability insurance! Smart!!