The Primary Differences Between Full-Coverage And Liability Car Insurance

Insurance is not always easy to understand, and many people end up choosing the wrong types of coverage because they do not know what types to pick. The two main options you have when buying auto insurance are liability-only policies and full-coverage plans. If you can understand the differences between these two options, you will likely choose the right coverage for your needs. Here are three of the leading differences between liability and full-coverage insurance policies.

The Protection Each Offers

The primary difference between these types of insurance is the protection you receive. If you buy a liability-only policy, you have a plan that protects others. This plan covers the costs of damages to other drivers if you cause an accident while driving. For example, if you pull out in front of a car and the car hits you, you would be the at-fault driver. In this case, your policy would pay for the repairs and medical bills for the other driver.

A full-coverage policy protects you in situations like these. Instead of only covering the person you struck with your vehicle, your policy would also pay for your car repairs. Full-coverage provides more protection than liability-only policies.

The Costs

The second difference you will see is the costs. You can expect to pay more for a full-coverage policy because you receive more coverage through it. Therefore, if you want a low-cost policy, you might want to stick with a liability-only policy. If you want sufficient coverage and lower risks, you will benefit from a full-coverage plan. The amount of money you can save by choosing liability-only varies, but you can contact an auto insurance company to find out.

The Legal Requirements for Car Owners

The other difference to understand is the legal requirements for car owners. Anyone who has a car loan on their vehicle has different rules than a person who owns their car outright. When you own your car outright, you can choose any type of coverage you want. If you have a lender, you must choose the coverage types they require. Almost all car lenders require full-coverage policies. Therefore, you must follow this rule while you have an outstanding loan on your car.

As you can see, there are major differences between liability coverage and full-coverage policies. If you have further questions or need advice about the protection you need, contact a local auto insurance agent.

About Me

Finding A Better Insurance Plan

When I found out that my wife was pregnant, I was just as nervous as I was excited. I realized that our health insurance wouldn't cover the entire bill, but I had no idea how bad it would really be. After the baby came, we were slapped with steep, overwhelming medical bills and it was really frustrating. After having that experience, I decided to shop around for another insurance plan that would cover us better. Check out this website to learn more about insurance in general, so that you aren't left wondering what to do with your family health insurance plans.

Latest Posts

10 May 2024
As a business owner, one of the most important decisions you can make is to invest in general liability insurance. This type of insurance provides cov

12 February 2024
Navigating the world of insurance can often feel daunting. With myriad policies, providers, and terms to understand, it's easy to feel overwhelmed. Th

18 December 2023
If you're planning on buying or selling a property, you might be wondering if it's worth it to hire a real estate closing agency. A real estate closin