When you are deciding what kind of insurance coverage you want on your vehicle, you are faced with two different choices, liability or full-coverage. Both of these insurance policies will have their pros and cons. It is important to know what each of these terms mean so that you can choose the right coverage for your vehicles. Signet Insurance Group is here to explain the difference between full-coverage and liability auto insurance.
If you hear people talk about having liability-only insurance coverage, it is an insurance policy that will cover two main categories, injury and damage.
– Bodily Injury: Usually, when you have liability insurance coverage and find yourself in an accident, the policy will cover bodily injury when the accident is your fault. It should be noted that there will be a limit on what the policy will cover depending on the terms of your policy. Make sure that you have enough coverage that you feel comfortable.
– Damage: When you have liability insurance on your vehicle, it will only cover damage that you have caused to another person’s vehicle, not your own. If the accident was at the fault of the other person, their insurance policy should cover damage to your vehicle or property as most states require you have at least a liability insurance policy to drive legally.
If you have full-coverage insurance on your vehicle, you are going to have a lot more coverage than a liability policy. Just like the name states, when you have full-coverage insurance, any injury or damage caused in an accident will be covered by the insurance company. There are a few instances where something might not be covered though including:
– Street racing or other illegal activities
– Intentional damage
– Catastrophes such as flooding
How to Choose Which Policy You Need
It might be tempting to go with a liability policy when choosing your auto insurance, but you should know that the cheaper price might end up costing you more in the case of an accident. You need to take a close look at your finances and make sure you can handle paying out of pocket in the case that you experience an auto accident. You should calculate this based on all of your assets as they could be at risk if you don’t have the means to pay. Knowing what your net worth is, will help you know what policy you want to choose. You can also think about the vehicles that you drive. If you are driving vehicles that are new and more expensive, it might give you peace of mind to have full-coverage.
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It doesn’t matter what type of insurance you are looking for for your vehicle, you can turn to Signet Insurance Group to help you find the best price. Let us help you find the auto insurance that best fits your needs. Call us today!
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