Comprehensive insurance is cheaper because the events it covers are less likely to occur than a collision, and the maximum payout is your car’s actual cash value (ACV) rather than another driver’s injuries and property damage. Given the lower level of risk, insurers charge less for comprehensive coverage.
Comprehensive Insurance vs. Other Types of Coverage
Comprehensive insurance is subject to a deductible, usually between $100 and $1,000. A higher deductible typically means lower premiums, but you should never choose a deductible that costs more than you can comfortably afford.
Note: Premiums are representative of a 45-year-old good driver in California; individual premiums will vary.
Comprehensive insurance covers damage to your vehicle caused by non-moving events, such as falling objects, fire, theft, or vandalism. Liability insurance covers other drivers’ medical expenses and property damage from an accident you caused.
If you plan on driving your vehicle, comprehensive insurance cannot replace liability insurance because liability insurance is required by almost every state while comprehensive coverage is not required by any states. Furthermore, comprehensive-only policies are not offered by every insurer and are only available for cars in long-term storage.
The cheapest type of car insurance is state-minimum liability coverage. Liability car insurance costs $716 per year on average, and it is cheaper than a full coverage car insurance policy since it does not include comprehensive and collision coverage. Also known as third-party insurance, liability insurance pays for other drivers’ expenses when the policyholder causes an accident.… read full answer
Liability insurance tends to be the cheapest type of insurance because it offers the most minimal coverage. Other types of coverage like gap insurance and roadside assistance do cost less than liability insurance, but they generally cannot be purchased on their own and the cost will be on top of your liability insurance premiums.
Note: Data is from Quadrant Information Services, insurance company websites, and third-party sources. Individual pricing may vary.
The cheapest liability insurance is offered by companies that have competitive rates across the board, as well as a variety of discounts to help keep premiums low. Depending on your state and driving history, some companies offer even cheaper insurance premiums than the national average liability insurance cost of $716.
Cheapest Liability Car Insurance from Popular Companies
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