When it comes to finding the perfect car insurance plan, it's essential to understand the various coverages and how much you need. As you dig deeper into insurance policies, questions can begin to surface, like "What is the difference between liability insurance and full coverage?" or "Which policy is best for me?"
Saferoad Insurance Services will walk you through the differences between liability and full coverage auto insurance to help you decide which of the two best suits your needs.
What Is Liability Coverage?
Liability insurance is required by most states and covers the cost of injuries and damages you may have caused in an accident. In other words, liability insurance does NOT cover damage to your car or an injury to yourself; it only covers damages to others that you are legally responsible for.
Liability insurance is split into two components: property damage liability and bodily injury liability.
Property damage liability coverage pays for damages to other vehicles or property when you're at fault. The policy limit is listed as a single dollar amount representing the maximum payout per accident. Damage done to your vehicle is not included in the amount.
Bodily injury liability coverage will cover the cost of the other person's injuries if you are at fault for the accident. These policy limits will show the maximum amount paid per person injured and paid for the entire accident.
What Is Full-Coverage Insurance?
Full coverage doesn't mean that your policy has all the add-ons; it refers to the policies that include the state's minimum policies and collision and comprehensive insurance.
The collision insurance coverage pays for repairs or replacements for your car after an accident. On the other hand, comprehensive insurance covers the costs when your vehicle is damaged by something other than an accident, like a natural disaster or vandalism.
Full coverage can also include personal injury protection, medical payments coverage, and uninsured/underinsured coverage.
Which Is Better: Liability Insurance or Full Coverage
No matter how good your driving might be, you should protect yourself and your vehicle in case of an accident. When considering which coverage is best for you, you should always get the policy you can afford. However, full coverage insurance is the better option. Having full coverage will provide a wide safety net financially and physically and helps reduce the stress that comes with handling car issues.
Saferoad Insurance Services can help you gain more insight into liability and full coverage auto insurance to find the best policy. If you're in California, be sure to check in with us to learn about all our coverage options and an affordable automobile insurance quote.