Liability vs. Full Coverage Insurance. Which should you choose?
Evaluating the possible benefits and drawbacks of opting for liability versus full coverage car insurance is crucial for finding the most suitable plan for your requirements. While liability-only policies typically come with lower premiums, their coverage is limited. On the other hand, full coverage insurance usually provides both comprehensive and collision protection, addressing a wider range of scenarios, including damage to the insured’s vehicle.
Liability: The State Required Minimum
Liability coverage protects you from costs associated with damages that another driver causes in an accident. This encompasses medical expenses and repair costs for their property. Essentially, it only covers the damages of the other driver and not your own. Liability coverage is a basic requirement in every state, while no state requires a full coverage policy. However, if your vehicle is financed, the bank will probably insist that you keep a full coverage insurance policy.
It’s important to understand that liability insurance does not cover any damage to your own car or any medical expenses you might incur from an accident, no matter who caused the damage. You have the option to buy extra coverages that provide more protection for you and your vehicle, like uninsured or underinsured motorist coverage, personal injury protection, or medical payments; however, these are usually not part of your liability insurance.
Full Coverage Insurance
Full coverage refers to various insurance types grouped together in a single policy aimed at protecting both you and your vehicle. Typically, full coverage insurance provides comprehensive and collision protection, covering a wider range of scenarios, including damage to the policyholder’s car. A full coverage policy includes liability insurance as well as comprehensive and collision coverage, which addresses damages to your vehicle beyond just collisions, such as theft or vandalism. Because of the extensive protection it offers, full coverage is usually pricier than liability-only insurance.
Comprehensive coverage usually includes rental reimbursement and emergency roadside help. If your car is worth a lot, having full coverage can safeguard your finances if you experience a serious accident, even if the car is fully paid for. Choosing just the minimum liability insurance required by your state might save you some cash at first, but it could result in higher costs if several cars are damaged in an accident that you caused.
The Benefits of Being Fully Covered
Full coverage insurance provides you with protection in accidents where you are at fault. For example, if you hit another car on the road or crash into a guardrail, your collision coverage will pay for the damages to your vehicle, and your liability coverage will take care of the costs related to the accident.
Should I Keep Full Coverage Insurance if My Car Is Paid For?
There are some instances where transitioning to a liability-only policy might make sense.
If you’ve completely paid off your car and don’t use it much, choosing liability-only coverage can be a smart way to save money while keeping your risks manageable. Additionally, if your car isn’t worth much and you can handle replacing it if something happens, going for liability-only coverage could be a better option. Just remember, if you end up facing situations like a car fire or theft, you’ll need to cover the replacement costs on your own since your insurance won’t help with that.
If you’ve been injured in a car, truck, or motorcycle wreck and have questions about your insurance coverage, contact us today!
Named one of the “Best Car Accident Lawyers in Dallas” by Expertise.com, Brian Brunson is Dallas personal injury attorney who is dedicated to helping clients who have suffered a car, truck, or motorcycle injury through the negligent or wrongful conduct of other drivers. In addition, his professionalism is unmatched and the firms’ client reviews speak for themselves.
We proudly serve the Dallas-Fort Worth metroplex and surrounding areas, our office supports the legal needs of a wide variety of clients. Let the Law Office of Brian Brunson be your advocate in your time of need and help you put your life back together. If we can’t win or settle your case, you don’t pay a dime! We know it can be daunting to take that first step after you’ve been hurt. Contact Brian Brunson today via email or call us toll-free at 1-844-41-WRECK. We can help, when no one else will.
