What Car Insurance Coverage Do I Need?

Decide how much liability coverage is enough for similar type of drivers.

Liability vs Full Coverage Auto Insurance

Liability Auto Insurance vs. Full Coverage Auto Insurance: Understanding the Differences

When looking for auto insurance, many individuals get lost in trying to understand the different types available. Two main types of auto insurance are liability and full coverage. Knowing what type of insurance is needed demands both a thorough knowledge of a state's laws as well as an idea of what type of insurance a person's lifestyle requires.

Liability insurance covers damage done, in the event of an accident, to another vehicle. Many, if not most, states have a minimum requirement for liability insurance. Although this insurance is both a necessary and good thing to have, keep in mind that it will cover only the damage done to another vehicle and not the damage done to the insurance holder's vehicle. For a fuller idea of what kind of liability insurance to purchase, look into the different state requirements.

Full coverage insurance covers both collision and comprehensive auto insurance. Collision insurance will, in the event of an accident with either another car or another object, pay for the damage done to your vehicle. Comprehensive covers damage done by vandalism, broken glass, and weather, and also provides coverage in the event of auto theft. Other things often covered by comprehensive include towing fees, paying for rental cars and medical bills, and uninsured motorist coverage. Once again, deciding on exactly what kind of full coverage insurance is needed will depend on the rules of the state as well as the requirements caused by lifestyle and the type of vehicle.

When considering full coverage and liability auto insurance, car owners should think about a few things. First, they should take a look at their car. How old is it? What type of car is it? How much money will be spent in replacing or repairing a damaged or stolen vehicle? Insurance needs to match the type of car. Don't get too much insurance for an old, beat up vehicle, or too little insurance for a beautiful, new, showcase model. Other things to consider include the deductible rate and the vehicle owner's lifestyle. All auto owners should keep in mind that while a cheap rate may seem desirable right now, if an accident happens, individuals may wish they had invested in a more expensive policy with more coverage. But don't settle for a too expensive policy, shop around and find the best deal possible.

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