Discuss the differences among the following three parts of motor-vehicle physical damage insurance coverage that affect the collision repair industry: liability, collision, and comprehensive.

Question

What will be an ideal response?

Answer 1

Liability is the part of the policy that insures the vehicle's owner for damages he or she may cause to other people and/or their property. Claims for damage to another person or vehicle are commonly called “third party” claims. The insured and their insurance company are the first and second parties respectively; a vehicle or person that was involved in a loss with the insured (first) party is the third party.
Collision covers damage to an insured owner's vehicle that occurs as a result of most collision-related mishaps, regardless of fault. This coverage applies only to the insured vehicle that is listed under the policy contract and is thus considered a “first party” claim with the insurance company that issued the policy to its policyholder.
Comprehensive coverage usually applies to damages that are willfully carried out on the insured vehicle such as vandalism (spray paint, scratches, etc.), the theft of parts or the entire vehicle, and specifically detailed (in the policy) occurrences not covered under collision, such as striking a live deer, or other select animals. In addition, towing, glass breakage, and at times, “claims-related damages” (i.e. damages incurred after a collision but not directly related to it, such as tow truck-induced damages, or weather damages to an interior as a result of collision-related glass breakage that went unattended in a tow yard) are covered.