Liability vs Full Coverage Insurance
Hey WalletHubbers! 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. To check out WalletHub’s picks for the cheapest car insurance
companies, just click the button here..
