Full Coverage Vs Liability Car Insurance

What Is Full Coverage Car Insurance?

Full coverage car insurance is a combination of two types of coverage: liability and collision. Liability insurance covers the damages that you cause to other people and their property when you are at fault in an accident. Collision coverage pays to repair or replace your vehicle if it is damaged in an accident, regardless of who is at fault. Combined, liability and collision coverage make up full coverage car insurance.

What Is Liability Car Insurance?

Liability car insurance is the minimum amount of insurance required by law in most states. Liability coverage pays for damage to the other person’s property, such as their car, as the result of an accident in which you are at fault. Liability coverage also pays for any medical bills that result from an accident. Liability coverage does not pay to repair or replace your vehicle, or for any medical bills that you incur.

Pros and Cons of Full Coverage Car Insurance

One of the biggest benefits of full coverage car insurance is that it provides you with financial protection if you are in an accident. If you are at fault in an accident, your liability coverage will pay for the other person’s medical bills, car repairs, and other damages. Your collision coverage will pay to repair or replace your vehicle, regardless of who is at fault.

One of the biggest drawbacks to full coverage car insurance is that it is typically more expensive than liability only coverage. This is because you are purchasing two types of coverage, which can increase the cost of your insurance premium. Additionally, if you are in an accident and your car is totaled, your insurance company will only pay you the actual cash value of your car, not the amount that it would cost to replace it.

Pros and Cons of Liability Car Insurance

One of the biggest benefits of liability car insurance is that it is typically less expensive than full coverage car insurance. This is because you are only purchasing one type of coverage, which can reduce the cost of your insurance premium. Additionally, if you are in an accident and your car is totaled, your insurance company will only pay you the actual cash value of your car, not the amount that it would cost to replace it.

One of the biggest drawbacks to liability car insurance is that it does not provide you with financial protection if you are in an accident. If you are at fault in an accident, you are responsible for paying for the other person’s medical bills, car repairs, and other damages. Additionally, liability coverage does not pay to repair or replace your vehicle, or for any medical bills that you incur.

Conclusion

When deciding between full coverage car insurance and liability car insurance, it is important to consider your budget and your driving habits. Full coverage car insurance is typically more expensive, but it can provide you with financial protection in the event of an accident. Liability car insurance is typically less expensive, but it does not provide you with any financial protection in the event of an accident.