What Drivers Need to Know About the Differences Between Full Coverage Car Insurance and Liability Car Insurance
Compare-autoinsurance.org has launched a new blog post that presents the differences between car insurance full coverage and liability car insurance.
For more info and free car insurance quotes online, visit https://compare-autoinsurance.org/what-are-the-differences-between-full-coverage-car-insurance-and-liability-car-insurance/
Car insurance is something every driver needs, but few of them fully understand how it works. Many drivers have tried to do their own research to get as much information as possible. However, they didn't get real guidance. Even turning to experts from car insurance companies can cause more confusion to some drivers. One common area of confusion for drivers is the difference between full coverage and liability coverage.
To better understand the differences between full coverage and liability coverage, drivers should know the following:
- What is liability coverage. Liability insurance is a type of coverage that covers other people's injuries and property damage if the policyholder is at fault. It ensures that other people don't have to pay out of pocket for their medical bills or repair expenses, and it makes sure that the policyholder isn't on the hook for those costs, either. Liability insurance is broken into two components: bodily injury liability insurance and property damage liability insurance.
- What is bodily injury liability insurance. It's a part of the liability insurance that takes care of loss of income, medical bills, legal fees, pain and suffering, and, in a worst-case scenario, funeral costs for the injured parties. Like many other types of car insurance, this one also comes with coverage limits. One is the maximum amount the insurer will pay per person for each person involved in the accident, and the other is the maximum total amount the insurer will pay overall. Usually, these insurance limits are written in a format like maximum per person payment / maximum total payment. Almost every state has a required minimum limit for bodily liability insurance. However, low limits are not always enough to pay for the injuries and other expenses. In some cases, policyholders had to pay thousands of dollars out of their pockets, because they didn't have enough coverage.
- What is property damage liability insurance. This liability insurance component has only one limit that refers to the amount that the policyholder's insurance company will pay towards the other party's car repair costs if the policyholder causes an accident.
- What is full coverage. Full coverage refers to a combination of coverages that help protect a vehicle and its passengers. Full coverage car insurance generally includes liability insurance, comprehensive coverage, and collision coverage.
- What is comprehensive coverage. Comprehensive coverage covers damage done to a vehicle that wasn't involved in an accident. It covers damages done by fire, floods, theft, vandalism, falling objects, or by animals.
- What is collision coverage. Collision coverage covers damage done to a vehicle that was involved in an accident, regardless of who caused it. It covers damage done when hitting another car or a stationary object. It also covers the damages done to a parked car by another vehicle.
For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/
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