When you are choosing what car insurance policy you want to go with, there are all kinds of choices that you have to make. One of those choices is whether you want to get full coverage or liability. What's the difference and how do you know when you should go with which choice?
Liability Auto Insurance
If you choose to go with liability insurance, you are going to have insurance that will only cover damage to other's cars or property, as long as that damage is damage that you are legally liable for. If you choose to go with liability insurance, none of the damage that is done to your car is going to be covered. Liability insurance is also the lowest minimum insurance that is generally required by law. How much liability your state requires you to carry varies from state to state, but it's important that you check with an insurance agent or your state laws to make sure that you are getting the right amount of insurance. Generally, if your car is an older car and isn't worth very much, liability can be a good choice for you.
Full Coverage Auto Insurance
Full coverage auto insurance includes liability insurance. However, it goes a step further than that. On top of paying for damage to other cars or property, the full coverage insurance will also cover damage to your car. Your insurance policy may also include coverage of other things. For example, if your car is vandalized in your parking lot or is damaged due to weather, the damage may be covered by your policy and you won't have to pay for the damage. However, full coverage insurance also generally comes with a deductible. Your insurance won't pay for anything under that deductible amount. So, if your deductible is $500, then your insurance will start paying for damage or injuries when it reaches $501. The higher your deductible is, the lower your overall premium is going to be, but that also means that you are going to have to pay more out of pocket than you might otherwise have to. If you have a newer car or you are still paying off a car loan, then going with full coverage car insurance can be a good idea.
If you need to get car insurance and you aren't sure what you should go with, you need to know the difference between liability and full coverage and when you should choose to get one or the other.