What is the difference between liability and comprehensive insurance?

Liability and comprehensive insurance are two distinct types of coverage that serve different purposes in the context of automobile insurance. Liability insurance is primarily designed to protect the policyholder from financial loss in the event that they are found legally responsible for causing injury or damage to another person or their property while operating a vehicle. This type of insurance covers the costs associated with bodily injury and property damage claims made against the insured, ensuring that they do not have to bear these expenses out of pocket. Liability insurance typically consists of two components: bodily injury liability and property damage liability. On the other hand, comprehensive insurance provides coverage for damage to the policyholder’s own vehicle that is not the result of a collision. This type of insurance covers a broad range of incidents, including theft, vandalism, natural disasters, and accidents involving animals. Comprehensive insurance is designed to protect the policyholder's investment in their vehicle, ensuring they are compensated for losses that are often beyond their control. In summary, liability insurance protects against claims from third parties when an insured driver causes damage, while comprehensive insurance protects the insured’s own vehicle against a variety of non-collision-related incidents. It is important for policyholders to assess their individual needs and risks when considering coverage options. For further information regarding specific policies, it may be beneficial to refer to the current webpage of First Insurance Company of Hawaii, LTD, where details and contact information can be found.