Full Coverage vs. Liability Auto Insurance

Getting auto insurance can seem relatively straightforward, from the outside. But, as you begin to delve deeper into the topic, you may start to have certain questions – especially if this is the first time you are purchasing auto insurance. One of the most important things that you’ll need to decide is whether you should buy liability or full coverage auto insurance. If you don’t know the difference between the two types of policies, read on.

What Is Liability Auto Insurance?

Liability auto insurance covers your legal liability in case you cause an accident. Most states in the country require vehicle buyers to at least have liability auto insurance. If you own the car outright, you don’t have to purchase full-coverage auto insurance. However, if you bought the car on loan, it is likely that you will need to purchase full-coverage insurance since the lender will require it.

What Is Full Coverage Auto Insurance?

Full coverage auto insurance includes both comprehensive and collision coverage and can sometimes even include emergency roadside coverage and rental reimbursement. If your car is worth a lot of money or if you are purchasing a brand new car, purchasing full coverage insurance is worth considering.

Does Full Coverage Auto Insurance Include Liability?

Liability coverage is the most basic protection you get with most car insurance policies. So, if you pay for full coverage auto insurance, there’s a good chance you’ll also be getting liability insurance. Depending on where you are located, full coverage auto insurance can also include personal injury protection and medical payments coverage. Make sure you check with your insurance agent about what is included in your full coverage auto insurance plan.

Does Full Coverage Auto Insurance Offer Complete Coverage?

Full coverage auto insurance, as the name suggests, covers a number of events. However, there are certain things that may not be covered. For instance, if you are driving under the influence of alcohol or other substances and happen to damage your vehicle, your insurance policy will likely not cover the cost of the repairs. So, before you buy a policy, make sure that you are aware of what is included in your coverage and what is excluded from it.