One of the main things you will need to consider when buying auto insurance is whether you want liability-only or full-coverage insurance. If you are unsure about which type you need, learning more about each option will help you choose the right one for your vehicle. Here are several things to know about both types.
The Basics of Liability Auto Insurance
The first thing to understand is the basic principles of liability coverage. Liability coverage is the cheapest form of coverage you can purchase, but it also provides the least amount of coverage. If you ever get in an accident, it only covers damages you cause to other people. It never provides coverage for yourself or your vehicle. It only helps other people, which is beneficial in several ways. The main reason it is beneficial is that it prevents someone from suing you after you cause damage to them or their cars.
The Basics of Full-Coverage Insurance
Full-coverage insurance has many different protections, including collision coverage, which pays for the damage to your car if you wreck it. It also includes comprehensive coverage, which pays for the damage to your car if you hit a deer, experience vandalism, or encounter any other damage that is not a direct result of a driving accident. It also provides liability protection. Therefore, a full-coverage policy gives you a lot more protection in various areas.
The Factors To Consider When Deciding
When deciding which type to choose, you might want to think about a few things. First, do you owe money on your car? If so, you have a car lender that dictates the types of coverage you must have, and they will require full-coverage insurance. Secondly, think about the value of your car. If you do not have a loan but have a valuable car, you might need a full-coverage policy for your protection.
If your car is not worth a lot and you do not have a loan, going with a liability-only plan might work for you. You can always ask an insurance agent for quotes for both types before you decide which type of plan to purchase.
As you begin thinking about both options, you can decide which is the best type for you. If you have questions about your auto insurance policy or if you need help enrolling for liability-only or full-coverage insurance, contact a local auto insurance agent today.Share