Purchasing auto insurance is one of the most important things a driver can buy. In fact, most every state in the US requires motorists to carry liability auto insurance as the bare minimum. However, liability insurance is not the only type of auto insurance that is available. Drivers also have the option of purchasing full coverage auto insurance, if they prefer. These are some ways that full coverage auto insurance differs from liability-only auto insurance.
Vehicle Damages
Damage caused to the vehicle of another party in an accident that is the policy owner's fault will be covered by liability-only auto insurance. However, liability-only insurance does not cover the cost of damages to the vehicle of the policyholder. Liability-only insurance will only cover the cost of repairing or replacing the vehicle of the person the policy owner damaged in the accident.
With full coverage insurance, the vehicle damages of the policy owner's automobile and any other party's vehicle involved in the accident will be covered if the policy owner is found to be at fault in the accident.
Personal Injuries
The same goes for personal injuries that occur during an automobile accident. If the policy owner causes injuries to another party in an accident, liability insurance will only pay for the cost of the other party's medical bills, hospital stays, treatments, lost time at work, etc. But, if the policy owner carries full coverage insurance, any expenses incurred due to injuries that occur to him or his passengers will also be covered by his insurance.
Other Property Damage
Sometimes damage occurs to other private or public property during automobile accidents. If the at-fault party carries liability-only insurance, this will pay for the cost of damages that occur with the other party's vehicle. For instance, if an at-fault motorist hits a car and causes that car to knock down a private mailbox, liability insurance will cover the cost of repairing or replacing that mailbox. Although, if the policyholder is at fault and they knock down the mailbox, the insurance will not cover the costs. The policy owner would have to have a full coverage insurance policy to pay for the cost of property damage done by their own vehicle.
Liability-only auto insurance and full coverage insurance also differ in their initial purchase price. Full coverage insurance is often substantially more expensive because it offers more coverage than liability-only insurance. Full coverage insurance may also have a deductible that policy owners must meet first before the coverage kicks in. This means that the policyholder may have to pay a portion of the costs incurred during an accident before the insurance covers the rest. Liability-only insurance usually does not have a deductible to be met.
To learn more, contact an auto insurance service provider.
