Liability vs Full Car Insurance

This is very important to understand different types of car insurance in order to choose the best one. I have been in this field for quite a few years and thought about differentiating between full and liability car insurance.

Most people have no understanding of what full coverage car insurance actually is. The term exists but no one actually bothers to define it. So what is it exactly? Full coverage car insurance is basically a blending of different coverage options that comprise a whole so no matter what happens to you, your vehicle, or someone else and their vehicle; you’re covered from every possible angle.

Liability coverage is much more simplistic. It only protects the other person, their vehicle, and their property in the event you cause damage to them in any way.

Benefits — Liability Vs Full Coverage Car Insurance

Having liability coverage is better than not having any coverage at all and since it is required in most states it would be illegal to drive a vehicle without it anyway. By having liability coverage you protect yourself from getting a ticket for driving an uninsured vehicle. You will also protect yourself from having to pay for costs out of pocket should you become involved in an accident with another driver.

Young Driver Showing Thumps Up inside a Car

If you have the means to afford it, you’ll want to have full coverage car insurance. What this means is, despite paying more down and per month you’ll have collision coverage, comprehensive coverage, MedPay or PIP (Personal Injury Protection), as well as uninsured or underinsured coverage. In its most basic sense, collision coverage just protects you from having to pay out of pocket for repairs to your own vehicle in the event you find yourself involved in an accident. Comprehensive coverage protects you in the event you strike a deer or suffer damage from strong winds, etc. MedPay (similar to PIP) protects you and everyone else in the vehicle by footing the bill in the event injuries are sustained during an accident. A large number of states require PIP as part of basic coverage and all it does is basically cover the same thing as MedPay. In other words if you have Medicaid you aren’t considered as having health insurance and you must pay a fee to cover that fact while still being required to put PIP on your list of coverage you must pay for in order to receive coverage at all.

Costs

Different insurers charge different amounts but having liability coverage will not inflate your monthly payment amount much. Depending on who you choose to go with will determine the price you pay. Acquire numerous quotes from as many different companies as you can before making a concrete decision. Your credit rating and past driving history will also affect the amount you have to pay down along with your monthly payments.

If you have ever had your license suspended, you will have to fill out a special form (SR-22) and have it be approved before coverage can begin if you don’t have it on your vehicle already. This required form for high-risk drivers will inflate your rate as well and all it is is the company’s guarantee that you have valid insurance coverage through the company you chose.

The Best Policy

This really depends on the state you live, how often you drive your vehicle, and of course your personal preference. If you do a lot of driving (like a commute to work) you’ll want to have full coverage car insurance in order to protect against any possible accidents or injuries. If you drive only a short distance and don’t travel very many places throughout the year then having the basic PIP coverage is acceptable in most states. This is especially a good option if you are living on a tight budget.

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