Liability Vs Full Coverage Car Insurance

Today, we’re going to be talking about the differences between liability car insurance and full coverage car insurance. The main difference between liability and full coverage insurance is what they pay for. Liability insurance only pays for other people’s injuries or property damage in accidents that you cause.

Full coverage insurance, on the other hand, includes liability coverage but also adds comprehensive and collision coverage to the mix in order to pay for damage to your own vehicle. Full coverage can even pay for your medical bills after an accident if you include other types of insurance, like personal injury protection or medical payments coverage. Because it covers more things, full coverage insurance is a lot more expensive than liability-only insurance. On average, a full coverage policy costs around three  times as much as a liability-only policy.

Another key difference between liability and full coverage insurance is when they’re required. Liability insurance is required in nearly every state, while full coverage isn’t required by any laws. However, if your car is leased or financed, it’s likely that your lender or lessor will make you purchase full coverage. Even if you own your vehicle outright, it’s recommended that you purchase full coverage  insurance if you can afford it. Regardless of your driving skills, it only takes one major accident to send you into a financial crisis. But with a full coverage policy, you can drive with additional protection and avoid the financial burden that comes with vehicle repairs. Now that you know how liability and full coverage insurance work, you’re ready to start shopping for a policy. I hope you enjoyed this session on everything you need to know about Liability Vs Full Coverage Car Insurance. So always be sure to contact a professional before making any financial decisions.