Full Coverage vs. Liability-Only: Which Auto Insurance Is Right for You?
What if you were paying way too much for protection you did not really need?
All drivers should protect themselves with good car insurance, but there are many different kinds of policies from which to choose. For example, deciding between full coverage vs. liability policies can be tough, and your decision could have a major impact on your future finances.
For example, if you buy more insurance than you actually need, you will be paying extra every month for no reason. If you do not have enough, though, causing a single accident could lead you to pay hundreds or even thousands of dollars in out-of-pocket expenses.
How, then, do you decide between these two types of auto insurance? Keep reading to learn which type of policy is best for you and your ride.
Understanding the Basics: Liability-Only vs. Full Coverage
Before you can decide between full coverage vs. liability-only, you need to know more about how each of these types of auto insurance works. There is no one-size-fits-all kind of policy for every driver on the road, so it is up to everyone to decide what works best for their specific needs.
What are the basics of these policies, and what is the primary difference between full coverage and liability insurance? Below, you will find everything you need to know.
What Does Liability-Only Cover?
Liability-only car insurance is the minimum required by most states. This policy is designed to pay for damage to people and property you may cause while driving. If your damage exceeds your policy limit, you will have to pay the rest out of pocket. And this policy does not pay to repair your own vehicle, so if you are at fault and only have this type of policy, you will be responsible for all your own repair costs and injuries.
What Does Full Coverage Include?
A full policy includes three different types of protection: liability, collision, and comprehensive. The first protects against damage you cause, while collision pays for damage to your vehicle regardless of who is at fault. Finally, a comprehensive policy pays for much of the damage that occurs when you are not behind the wheel, such as what might happen during a storm.
Common Misconceptions About “Full” Coverage
The biggest auto insurance myth about full coverage is that it is a policy unto itself. In reality, this term is a combination of comprehensive, collision, and liability-only car insurance. The other misconception is that “full” coverage protects against every possible situation. In reality, every policy has limits and exclusions, and it is important to understand them all before you get into any accidents.
When Liability-Only Might Be the Right Choice
Generally speaking, the only time that you should choose liability as your only car insurance option is when you are driving an older vehicle. If it is old enough, then a full policy might be overly expensive compared to the value of the vehicle.
In short, those who can easily afford the repair costs or even the outright replacement cost of an older vehicle should stick with just liability. Everyone else should have full coverage or at least get more than the auto insurance state minimum for their area.
When Full Coverage Is a Smart Investment
Full coverage is the absolute best protection you can get for your car. However, it is also the most expensive, which is why it is so difficult for many drivers to choose between full coverage vs liability-only. How, then, can you decide for yourself?
It all comes down to how comfortable you are with paying an unexpected repair bill. If you are not too worried about possible accidents, you may be able to get just liability. Otherwise, you should strongly consider full coverage as a way to best protect your automobile.
Cost Differences and What Affects Your Rate
The exact cost of full coverage vs liability depends on the state where you live. However, a rule of thumb is that a full policy is often the pricier option, often costing between three to five times as much as liability-only.
Your own premium will be influenced by a number of different factors, including your driving history, type of car, where you live, and so on. Be sure to ask your carrier about the factors affecting your own premium as well as what discounts may be available. That way, you can explore the car insurance coverage options best suited for your vehicle and lifestyle.
How to Choose the Right Coverage for You
How, then, can you make the choice between full coverage vs. liability? As noted before, it mostly comes down to what kind of car you drive and how much spare cash you have. Someone with an old car and decent savings may be better off with only liability, but someone with a newer car, an emptier bank account, or both may be better off getting a more robust policy.
Remember, you can change your carrier at any time. Therefore, switching to a carrier such as InsureOne today can connect you to the best experts who can elaborate on the difference between full coverage and liability insurance. They can also offer the kinds of low prices and awesome customer service you deserve for being such a great driver.
Get the Right Protection at the Right Price
Now you know all about full coverage vs liability, including what these policies protect and how to decide which one is right for you. However, do you know who combines the best protection and the best rates for drivers just like you?
At InsureOne, we know how dangerous the road can be. That is why we are here to protect drivers with the perfect amount of protection. Ready to get what you need and never pay too much again? If so, come get a quote online. Alternatively, you can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to find an InsureOne office near you.