When it comes to purchasing the right car insurance policy for your vehicle, there are going to be a few things you need to learn. One of the biggest decisions you will need to make is whether you want liability or full-coverage insurance. Today, we are going to look at the differences between the two to give you a better idea of what you need.
What Is Full Coverage Insurance?
Full coverage insurance includes liability coverage, collision, and comprehensive insurance. Collision insurance is protection for situations where your vehicle is damaged by another vehicle or object while driving, regardless of who is at fault. Comprehensive insurance pays for repairs in non-collision incidents. This can be vandalism, theft, weather damage, and animal damage.
What Is Liability Insurance?
Liability insurance is the minimum insurance required in most states and covers the cost of damage and injuries to others in an accident that you have caused. This insurance does not cover damage to your own car or injuries that you sustain and will be split into two different components: bodily injury liability and property damage liability. Bodily injury liability coverage covers the cost of the other’s person’s injuries if you are at fault. Property damage liability coverage will cover damage to other vehicles or property when you are at fault.
Which Is Best For Me?
The best insurance for your vehicle will depend on how much coverage you want. Most vehicles that have a loan will require full coverage insurance to protect your bank’s investment. If you have an older vehicle that is not worth repairing if it becomes damaged, you can get away with liability insurance to keep your overall insurance costs down. When choosing insurance for your vehicle, take into consideration what you will need to be covered in an emergency if you unexpectedly get into an accident.