Car Insurance - Understanding the Difference between Liability Only and Full Coverage Car Insurance
By Troy Truman
When you are comparing car insurance policies to determine which policy is right for your needs, you may come across some terms that can be quite confusing. Liability only and full coverage may be two of those phrases that throw you off balance. What do they mean, and how do you know which type of policy is the best? Well, both options have a place in the market and to understand which will work in your situation, you first need to understand the terms.
Liability only car insurance is an option in many states. The minimum level of insurance that drivers must maintain is regulated by each state individually. Liability only is coverage that provides payment for damage that you cause to others, whether the damage is bodily injury or property damage. This type of coverage comes in three parts. Your policy may be stated as 25/50/15. What this means is that in a single accident the maximum amount that would be paid for injuries to an individual would be $25,000 and the total paid for all bodily injuries in that accident would be $50,000. The 15 refers to the maximum amount that would be paid for property damage in single incident. In this example, it would be $15,000.
While liability only car insurance coverage does cut down on your premiums, you leave yourself exposed to more financial risk. This type of coverage does not cover any expenses for your own injuries or damage to your car. In the event of a minor fender bender, you would have to bear the full brunt of the cost of the repairs. If you decide that liability only car insurance is too much of a risk for you, then you will want to take out a policy that provides for full coverage.
Full coverage car insurance adds an extra layer of security above the liability only option. This type of coverage will include comprehensive coverage and possibly collision coverage. When you have these options added to your policy, you will be able to receive payments for damage to yourself and your property in the event of an accident. Comprehensive coverage also protects you from other situations, such as a stolen car or weather damage like falling debris or flooding. Which type of policy you take on is a personal decision that must be carefully considered. Having an agent help you with decision may be a very good choice.
About The Author
Troy Truman is an online publisher providing great tips on car insurance. To learn more about this topic, visit http://www.AutoCheapInsurance.com/ today!