What is the Difference Between Full Coverage Insurance and Liability Insurance?

The terms “full coverage” and “liability insurance” are often used interchangeably, but they are two different forms of auto insurance. Knowing the differences between the two will help you select the right coverage for your needs.

Full Coverage Insurance

Full coverage insurance is an insurance policy that covers both property damage and liability. It covers damage to your own car in an accident, as well as damage to other people's property. It also covers any medical costs resulting from an accident, as well as any legal costs you may incur. It is important to note that full coverage does not include comprehensive coverage, which covers damage due to theft, vandalism, or weather-related events.

Liability Insurance

Liability insurance is typically required by law for most drivers, and it covers the costs of property damage or bodily injury to another person caused by your car. It does not cover damage to your own car or any medical expenses, and it does not cover any legal costs you may incur. Liability insurance can be purchased in different amounts, depending on the laws in your state and your own personal needs.

Which is Right for Me?

The type of insurance you should purchase depends on your individual needs and situation. If you want total protection for your car, then full coverage insurance is the best choice. However, if you are not worried about damage to your car and just want protection from legal and medical costs, then liability insurance may be sufficient. It is also important to consider the cost of the policy. Full coverage insurance is typically more expensive than liability insurance, so it is important to compare rates and coverage to find the best deal.

Conclusion

Full coverage insurance and liability insurance are two different forms of auto insurance that provide different levels of protection. Knowing the differences between the two will help you make an informed decision when selecting the right coverage for your needs. It is also important to consider the cost of the policy and compare rates and coverage to find the best deal.