Understanding the Difference Between Liability and Full Coverage Car Insurance

Purchasing a car is expensive enough without worrying about car insurance cost being unnecessarily high. Although liability car insurance is a must-have in virtually every state, full coverage car insurance is optional. The aim, however, is to understand the two policies and the difference in their coverage and cost. This way, you only have to purchase a policy that best suits your situation instead of buying it all at a high cost.

What Does the Term “Liability Car Insurance” Mean?

Just as its name suggests, liability car insurance is a policy that covers the expenses of the other driver in an accident for which you are found responsible or blamed. However, it should be noted that a liability car insurance policy does not have an unlimited amount of damage coverage.

This policy represents the maximum amount that you are required to pay for either type of coverage, either per person or in total.

There are also minimum requirements that vary by state, but you can purchase policies with a higher limit than that required by your state. This is because lack of adequate coverage for the total amount of damages caused by you could cause you to be sued in a civil court.

The two types of liability car insurance coverages include:

  • Bodily injury liability-which covers expenses like medical bills, lost wages, and compensation for the pain and suffering of the other driver
  • Property damage liability– which covers expenses like vehicle repair costs and damage to buildings or fences of those involved in the accident

What Does the Term “Full Coverage Car Insurance” Entail?

This kind of coverage includes both liability and comprehensive and collision coverage. It can also include medical coverage and uninsured/underinsured motorist coverage. Although it isn’t required by law like liability car insurance is, its coverage is much wider and versatile.

The types of full coverage car insurance are:

  • Collision insurance, which pays for damages to your vehicle after an accident including other vehicles and road hazards. However, there’s no coverage for accidents involving animals.
  • Comprehensive insurance, which pays for accident damages caused by animals, natural disaster, theft, or vandalism.
  • Medical Payments, which pays for medical bills and lost wages for you and those involved in the accident.
  • Personal Injury Protection, which pays for yours and your passengers’ medical bills. It is mostly used in no-fault states.
  • Uninsured/Underinsured Motorist Coverage, which covers the expenses of the other driver if he is at fault and uninsured or does not have full coverage to cover the cost of damages.

A lot of factors determine the cost of these two policies, from age, type of vehicle, driving record, state, and city. So, be well-versed on the two policies and choose one well-suited to you. For assistance with all your insurance needs, contact the experts at Miller Carlisle Insurance Services in Carlisle, PA. We look forward to helping you with all your coverage requirements.