Full Coverage Insurance vs. Liability Only

Unless you have taken the time to compare insurance quotes on a liability policy to quotes on a full coverage insurance policy you probably do not know all of the differences between these two types of policies. A lot of drivers only carry liability only coverage when they should be carrying full coverage. This article will explain the differences between these two types of policies so you can get a better idea of the type of policy you should have on your auto.

What do the policies cover if you cause an accident?

A liability only policy will cover damages to the other vehicle you hit or the property you damaged if you are at fault in an accident. This policy will provide monetary compensation to cover these expenses up until the dollar amount specified in your policy. Liability only policies do not provide you with any reimbursement for damages done to your car should you cause an accident and suffer damage to your vehicle. An instant online quote can tell you exactly what you can expect to pay for this minimal coverage. A full coverage policy will also cover the expenses for the other vehicle and property you have damaged. However, a full coverage policy will also cover the damages to your vehicle.

What do the policies cover if I get hit by an uninsured motorist?

A liability only policy provides you with no recourse should you get into an accident with an uninsured motorist. On the other hand, a full coverage policy will cover the costs of the damages done to your vehicle and any medical costs stemming from the accident.

What do the policies cover if my vehicle is stolen?

If your car gets stolen and you only have liability coverage then you will not be able to get compensation for your vehicle. A full coverage policy with comprehensive coverage will provide you with a check in the amount of money equivalent to the current value of your car should it get stolen.

What if my car is damaged in a storm or other act of nature?

Liability policies provide no monetary compensation if your car is damaged by hail, wind, or any other act of nature. If you purchase a full coverage policy that includes comprehensive coverage then you will have coverage in the event that your vehicle sustains damage in a storm or other weather event.