February 21, 2024
Image default

Liability vs. Full-Coverage Car Insurance: What’s Best for You?

Car insurance is one of those things you have to have but hope you never use. It’s there for when the worst-case scenario happens and you need financial protection. But what kind of protection do you need? Liability insurance or full coverage? Understanding the difference between the two is critical to making the best decision for you and your budget. In this article, we’ll break down liability vs. full-coverage car insurance and help you decide which is best for you.

What is Liability Insurance?

Liability insurance is the most basic type of car insurance. It covers the damage you do to other people and property if you’re at fault in an accident. Most states require a minimum amount of liability insurance, but you can purchase more if you want. Doing so will help protect your assets if you’re ever sued after an accident. You may even consider consulting with an agent for car insurance in Decatur to learn more about proper coverage. It will be worth your time and money in the long run.

There are two types of liability insurance: bodily injury and property damage. Bodily injury covers the medical bills and lost wages of the people injured in an accident you cause. Property damage covers the repairs or replacement of the other driver’s vehicle or any other property damaged in the accident. These are the basic types of coverage required in most states and are often abbreviated as BI/PD on your insurance policy.

What is Full Coverage Car Insurance?

Full coverage car insurance is a type of insurance that protects both you and the other driver in an accident. It goes beyond the minimum liability insurance requirements to cover damage to your vehicle, no matter who is at fault. It also includes additional types of protection like collision insurance, which covers the cost of repairs to your vehicle if it’s damaged in an accident, and comprehensive insurance, which covers damage from non-accident events like weather, theft, or vandalism.

While full coverage car insurance is not required by law, it’s often required by lenders if you’re financing a vehicle. That’s because they want to make sure their investment is protected in case of an accident. If you’re not required to carry full coverage, you may still want to consider it. That’s because it can provide peace of mind and protection in the event of an accident.

Which Insurance is Best for You?

The answer to this question depends on a few factors. The first is whether you’re required to carry full coverage. If you’re financing a vehicle, the answer is likely yes. If you own your vehicle outright, the decision is up to you. Another factor to consider is the value of your vehicle. If it’s not worth much, paying for comprehensive and collision coverage may not make sense. You would likely pay more in premiums than you would get back in the event of an accident. However, if your vehicle is newer or worth a lot of money, full coverage may be a good idea.

The last factor to consider is your driving record. If you have a history of accidents or traffic violations, you may be required to carry full coverage or pay higher rates for liability insurance. Either way, your driving record will impact your car insurance rates. Ultimately, the decision of whether to carry liability or full coverage car insurance is up to you. Consider checking in with services for insurance in Decatur, GA, to help make the best decision for your needs. They will also be able to provide you with accurate quotes.

To Conclude

Now you have all the information you need to make an informed decision on liability vs. full coverage car insurance. Be sure to shop around for the best rates and coverage for your needs. And remember, the best way to keep your rates low is to avoid accidents and traffic violations. Drive safe!