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  • Writer's pictureAl Boenker Insurance


As a young professional, you're likely familiar with the many challenges that come with being a young adult in today's world. From student loan debt to housing affordability, there's no shortage of obstacles to overcome. One area where we can provide guidance is in understanding the different types of car insurance. Here's a breakdown of the three main types of car insurance you should know about:

Liability Insurance

Liability insurance is the most basic type of car insurance and is required by law in the state of Texas. This type of insurance covers you if you are at fault in an accident and cause damage to someone else's property or injure them. Liability insurance typically includes two types of coverage: bodily injury liability and property damage liability.

Bodily injury liability covers the cost of medical expenses and other damages if you injure someone in an accident. Property damage liability covers the cost of repairs or replacement if you damage someone else's property, such as their car or mailbox. Remember, liability insurance does not provide coverage for you or your assets. It provides coverage for the 3rd party. Your liability only coverage kicks in to pay for the damages you caused to the other person. You will not receive any coverage for you or your vehicle.

Collision Insurance

Collision insurance covers the cost of repairing or replacing your car if it is damaged in an accident, regardless of who is at fault. If you have a car loan or lease, your lender may require you to have collision insurance to protect their investment in your vehicle.

Collision insurance is particularly important if you have a newer or more expensive car, as repairs can be costly. However, if you have an older car that is not worth much, the cost of collision insurance may not be worth it. Collision coverage is there to help you and your assets. Coverage limits vary and there are things to consider like deductibles and limits.

Comprehensive Insurance

Comprehensive insurance covers the cost of repairing or replacing your car if it is damaged or destroyed by something other than a collision, such as theft, vandalism, or natural disasters. Comprehensive insurance can be particularly valuable if you live in an area prone to extreme weather or high rates of car theft.

As with collision insurance, comprehensive insurance may not be worth the cost if you have an older or less valuable car. However, if you have a new or expensive car, comprehensive insurance can provide valuable peace of mind. Think of the value of your vehicle. If you were to be without a car would you be able to afford another.If the cost to repair or replace your car is not in your price range, then collision is something you might consider. Average cost per month is a lot less than a brand new car.

In conclusion, as a young adult driver, it's important to understand the different types of car insurance available to you. While liability insurance is required by law, collision and comprehensive insurance can be valuable options to consider depending on your circumstances. Be sure to shop around for the best rates and coverage options to find a policy that fits your needs and budget. Remember, coverages and limits can only be provided by a licensed insurance agent. Not sure where to begin or what type of insurance is best for you? Give our team at Al Boenker Insurance a call and they will discuss each type & offer guidance! Quotes are FREE & there is a good chance we can help you save on your auto insurance!

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