As a driver, you have to select the right car insurance to safeguard yourself, fellow travelers, and your car. When shopping for car insurance, you will come across two options: liability-only insurance and full coverage insurance.
But how do you know which one suits you best? The answer lies in understanding the two types of car insurance so you can make an informed decision. Keep reading to learn more about liability only and full coverage car insurance.
Liability Only Car Insurance
Liability insurance covers only the damage you inflict on other people’s property and bodily injuries you cause to others in an at-fault accident. It does not cover the cost of any repairs to your vehicle or medical expenses should you or your passengers get injured in an accident.
Liability-only insurance is often viable if you own an older vehicle with a lower market value or a limited budget. It is also the minimum coverage required by some states.
Full Coverage Car Insurance
Full coverage car insurance is a more comprehensive insurance policy that covers damages to your vehicle and medical expenses in addition to liability-only coverage. It typically includes collision coverage that pays for repairs to your vehicle up to its actual cash value, regardless of who is at fault in an accident. Additionally, the policy could provide comprehensive coverage, which pays for damage or loss to your vehicle due to theft, vandalism, or natural disasters, and uninsured motorist coverage.
When Is Full Coverage Insurance Mandatory?
If you have a loan or a lease on your vehicle, the lender or leasing company will require you to carry full coverage insurance. Their goal is to protect their investment—your vehicle, in case of an accident. It is also recommended to have full coverage insurance if your vehicle is valuable or expensive to repair.
Choosing the Right Coverage
When deciding which car insurance policy is right, consider your budget and your vehicle’s value. Liability-only insurance may be a good option if you have an older car or a limited budget. However, if you have a newer car or a loan on your vehicle, full coverage insurance is the better option.
Get the Right Car Insurance
As a driver, your peace of mind begins with getting the right car insurance. Whether you prefer liability only or full coverage, Quality 1st Insurance ensures you get the car insurance you need at the best possible price. Request a quote today and get the protection you deserve.