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The Difference Between Liability And Full Coverage Car Insurance

Shopping for cheap auto insurance isn’t the easiest task. Your auto insurance agent can help you compare rates and get you the best deals. The entire process of choosing the best and most affordable car insurance plan for you is kicked off by asking if you want both liability and full coverage car insurance. 

Almost all 50 states require motorists by law to carry some form of liability coverage. Liability coverage is what pays for physical and medical damage to others if you are at fault for an accident. The amount of liability insurance you have to carry varies by state but since you are personally financially responsible for anything the insurance doesn’t cover it might be in your best interest to get the best liability coverage you can afford. Remember, liability pays for the damages to the other party in the event you cause an accident. In most states you cannot renew your license without proof of insurance and there are steep fines if you cause an accident and do not carry liability insurance.

Many people are tempted to only take out the minimum insurance necessary by law and just hope for the best. It makes sense, no one wants to pay extra insurance premiums if they don’t really have to. But what would happen if you got into an accident that was your fault and you only carried liability insurance? Your own medical costs and damages to your car would not be covered, at all. The burden would be 100% your own responsibility. While your health insurance might cover your medical expenses, most people in American can’t get by without a car. If you car is totalled or badly damaged, could you afford to repair or replace it out of pocket? If the answer is no then you need to look at full coverage. 

Full coverage, as a term, is a bit misleading, it doesn’t cover everything 100% but depending on your policy it can remove most of the risk. You can choose to only get a collision insurance policy  (which pays for damage caused in a crash) or you can get comprehensive coverage that also covers damage that results from the weather, theft or vandalism. 

Again, there are different levels of coverage and your insurance agent can help you choose an affordable rate that also covers your needs.

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