Car Insurance – Full Coverage vs. Liability Only

Insuring your vehicle helps you stay safe on the road and compliant to the laws. However, there are different degrees of auto insurance coverage, with liability coverage as the mandatory and full coverage as optional.

Debating between the two? First, understand that the laws require that all drivers must have basic  liability insurance, which covers bodily injuries and property damages during an accident. In other words, you need to prove your financial responsibility for any future damages before you can legally drive your vehicle. Each state has its own minimum liability requirements, but people have the option of more coverage should they feel that the minimum insurance coverage is not enough. For instance, these people might be anticipating costs, such as expensive bills, that may exceed their coverage limit.

Also, understand that if you’re financing a vehicle, you may not have much say in which coverage to choose: your lien holder will determine the insurance policy requirement. For everyone else, you do have the option to choose (whether you like that or not).

Full coverage insurance includes liability insurance, as well as collision and comprehensive coverage. Although you pay more for full coverage, you’re also equipped with a more holistic accident protection plan. Likewise, you may find that having full coverage is a waste of money in your case. The best way to go about this is to do your research and fully assess your individual needs.

Can’t decide which one is right for you? Conduct a cost-benefit analysis on quotes from several insurance companies (most insurance companies, such as Freeway Insurance, offer free quotes upon request). This will ensure that you receive the best price with the most realistic estimate. Also be sure to ask each insurance company about additional discounts and savings that will reduce premium costs without sacrificing premium quality.

Got more questions about insurance coverage plans? Feel free to contact a Cost-U-Less Insurance agent to learn more about its affordable coverage offerings!