Comparing Liability and Full Coverage Car Insurance
The decision to go with either a liability or a full coverage car insurance can be a confusing one. Both these forms of coverage have their own advantages and limitations.
Liability insurance coverage typically covers any damages to the car and pays for the medical expenses of the driver and the passengers when the car is involved in a collision. On the other hand, full coverage insurance can be of collision and comprehensive type. Collision coverage will pay for repairs if your vehicle is in a collision regardless of whose fault it is whereas comprehensive insurance will cover the damages to your vehicle due to non-collision related reasons such as natural disasters, theft, and vandalism.
Liability insurance as the name suggests is quite limited and does not cover all kinds of damages to your car whereas full coverage insurance is much more flexible and will provide you with far more options. Liability coverage though limited will always cost you less than the full coverage insurance. If you have a new vehicle that has not been completely paid off, you do not have the option to purchase liability insurance. In this scenario, purchasing full coverage is your only option. If you are responsible for a collision and own a liability insurance, the insurer will not pay for the damages to your car but only for the damages to the car belonging to the third party while if you carry full coverage, the insurance provider will pay for damages to both the cars.
When you select a certain kind of coverage for your car, you should keep in mind certain factors like your driving record and the value of your car before you make an informed decision on the type of coverage that best fits your needs.
