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What is the difference between liability car insurance vs full coverage? Should you drop full coverage and keep liability only? Learn at what point liability only makes sense.

Liability Car Insurance vs Full Coverage

In almost all states, it is illegal to drive your car without some insurance, and most states require that you at least have liability coverage. It is one of the most basic options you can have, though it covers three areas, including bodily injury to other motorists, property damage, and bodily injury to multiple people in other vehicles.

You can also find out about full coverage and learning the difference between liability car insurance vs full coverage can help you determine which option best suits your needs.

Comprehensive Insurance

If you own a vehicle, no matter where or how often you drive it, and even if you are the safest driver on the world, your car is subject to being damaged. This includes damage that would occur outside of a collision; for example, a tree limb falls on top of your car, someone spray paints graffiti on it, or a fire breaks out.

In these types of events, comprehensive insurance would cover the cost of any losses. Essentially, it shields your vehicle from any damage that occurs as a result of anything outside of a collision, and it protects you from having to pay for the repairs out of your own pocket.

Liability Only

The minimum amount of car insurance you should have on your vehicle is auto liability, and it is required in most states. You are only required to have this option to be on the road legally, but that doesn’t mean you don’t have options.

The idea is that if you damage someone’s vehicle or property, you must pay for any of the damages. You probably don’t have thousands of dollars lying around the house, which is why you insure yourself against such claims and these companies will pay it for you. Then, you may be required to pay some of it back, or it may be paid from the premiums you pay to the company.

You’ve got three options when it comes to liability car insurance. If you harm the driver in another vehicle, you will have bodily injury to another driver. If you injure numerous people in the other car, you’ll have bodily injury to multiple people, and if you damage the vehicle (or damage buildings or other property), you’ll have property damage liability.

These companies may only pay up to a certain amount (the coverage limit you selected), so you can be sued for any amount beyond your limits and could have to pay out-of-pocket for any claims that exceed your limits.

Coverage options are usually listed by the company in a three-number pattern, such as 50/100/25. They are read as thousands, and the first number is the amount paid for medical bills of a single person. The second is medical bills spend on all people in the other vehicle, while the last number is the property damage.

Full Coverage Options

You are not required to have full coverage based on state rules, though many loan companies will require that you have it on your vehicle during the length of the loan. Liability car insurance vs full coverage – many people choose to get full coverage because it encompasses a lot more than liability-only plans.

In most cases, it also covers liabilities, so that if you injure someone else or cause damage, your company will pay for it. However, it also includes collision and comprehensive options. The collision version pays for your vehicle’s damages. In most cases, there is a deductible, which means you will have to pay some of the expense before the insurance company pays their amount.

Comprehensive coverage handles any damages that occur from vandalism, weather, theft, and more. You may also be able to get other options features, such as rental cars, towing fees, more medical protection, and the like. Again, it is likely to require a deductible, so you will pay some out of pocket expenses before the insurance kicks in.

Choosing What's Best For You

You can quickly see the differences between liability car insurance vs full coverage, and you should also note that there will be different prices, as well. The decision is yours to make, but it can be helpful to understand what each one includes so that you make an informed decision.

Tips For Deciding

If you take a loan out to pay for the vehicle, the decision may be made for you, as most banks and loan companies require full coverage. Therefore, you may not need to decide on your own about liability car insurance vs full coverage only in this case. However, once the loan is paid off, you may choose to drop down to liability-only options.

Liability Car Insurance vs Full Coverage - The Bottom Line

We hope this article on liability car insurance vs full coverage has been informative. Liability insurance can come with a variety of coverage options. For example, you may choose to have all three liabilities covered, but each one may have a different amount that the company pays.

Most companies will offer two or more options so that you can choose the one that best fits your budget and needs. It can be less expensive than full coverage options but doesn’t cover your vehicle damage at all. Therefore, if you are severely injured in the crash, you will have to cover the cost of fixing your car, which can be quite expensive.

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