Full Coverage vs. Liability Insurance: An Exciting Dilemma

Full Coverage vs. Liability Insurance: What to choose between these two options? You could save money on full insurance coverage for car costs when you rightly choose.  

The economy is currently unstable, and you may need a “lifeline” for your pocket. Maybe you are paying too much money on your car insurance premiums. The solution could be to adjust your auto insurance plan. Your economic problems could improve a little bit with this solution, which, in addition, would be momentary, and perhaps, in the future, it will turn into something negative.

At this point, the dilemma goes on. It is pretty simple: full coverage car insurance vs. liability. Continue reading, and you will know why you should have car insurance and what these two types of insurance consist of.

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What is Full Coverage Auto Insurance? 

Comprehensive coverage, liability coverage, and collision coverage are included in the so-called “Full coverage auto insurance.” In reality, no insurance company officially refers to this insurance plan in that way.

  • The liability coverage pays the other party involved in an accident for the damages you caused them. Later we will continue talking about this type of auto insurance policy. 
  • Collision coverage will cover the repair costs if your car is damaged in an accident. 
  • Comprehensive coverage protects you from situations not related to accidents, such as natural events, stealing, and others. 

There really isn’t such a thing with the official name of “full coverage”, but there are on the spot car insurance policies that do offer coverage for almost anything that could happen. 

What Is Liability Only Auto Insurance? 

Each state requires minimum coverage for any car circulating on the road. Typically, Liability only insurance is that coverage. So, liability coverage is required in all states, and it covers you in an at-fault accident that causes damages. This insurance policy will cover the damages you have caused, except for deductibles. 

Each state of the United States establishes the amount that it considers necessary to have liability coverage. Also, some states require other types of auto insurance coverage. Below, we offer a list of the requirements of every state:

BIL (bodily injury liability) is the coverage that pays for medical bills when you are responsible for the accident and the other party’s injuries. PDL (property damage liability) pays the repairs for damages in the accident. 

For instance, in the state of Alabama, what is established is 25/50/25. In this case, your insurance company would pay $25,000 for each person injured in the accident and up to $50,000 if there are more injured people. If there is property damage, your auto insurance company will also pay an amount not exceeding $25,000.

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Recommended liability auto insurance limits 

Although the minimum state requirements are much lower, the recommended values of most car insurance companies are 100/300/100. This is $100,000 for responsibility for property damage for a person and $100,000 to $300,000 in total for responsibility for bodily injuries.

Everyone knows that medical invoices and legal problems reach scandal figures. We firmly believe that having more car insurance coverage is preferable than we need instead of falling short.

Full coverage vs. liability car insurance: a hard decision!

The law requires that all vehicles used on the road be appropriately insured. But in addition to this, if an accident occurs, you will be well protected and will not have to pay out-of-pocket for damages. 

Accidents can become a big business in the United States (in fact, it is), and many people have lost everything because of them. Sometimes, customers decide to drop this car insurance coverage, perhaps trying to get cheaper auto insurance premiums. Or maybe a customer needs money for something else; it doesn’t matter. We recommend not doing this; it may be a mistake.

The eternal dilemma of full coverage vs. liability auto insurance should not take place. There are other ways to save money on your premiums. Shopping around is a wonderful way to save. Different car insurance companies have several ways to calculate rates. Therefore, compare the quotes of many car insurance carriers on direct auto insurance websites before buying a policy to find better coverage.