Choosing between liability vs full coverage for your auto insurance can be a difficult decision. Many factors come into play, such as the model of the vehicle, its age, and the purpose of it. In addition, this choice of car insurance can be decisive for the future of the driver. It is so important not to make a mistake when choosing.
As a reminder, car insurance is mandatory in the United States. It is prohibited to drive your vehicle on the road without being insured. One of the reasons insurance is required is to protect different road users and, on the other hand, to cover the damages that could be caused by an accident.
Driving a car without car insurance is an offense punishable by law, and the uninsured motorist will be liable for a fine of up to $1,000 or more.
Differences between liability and full coverage car insurance
There are many distinctions between liability and full-coverage auto insurance. It is first necessary to understand what these two guarantees really are before going into more detail about each offer.
- Liability insurance is the minimum mandatory coverage in the United States. Also known as “civil liability,” this option provides the driver with the smallest coverage.
- Full-coverage insurance covers a larger number of damages and claims. It provides its holder with maximum security when driving The coverage can vary between insurance companies, but they are all very comprehensive in terms of coverage for the vehicle and its driver.
The main difference between these two types of car insurance is the level of coverage. But obviously, the second notable difference is the price. For obvious reasons, liability insurance is much less expensive.
What is liability insurance?
What is called liability insurance is the minimum coverage offered by car insurance companies. This means that if the owner of the vehicle is responsible for the accident, his insurance will cover potential bodily injury and property damage caused to third parties but not the damage that the driver himself has suffered.
In other words, if you have an at-fault accident with another motorist, cyclist, or pedestrian, your insurance will cover the amount of damage you cause, not only to the vehicle hit but also to the person who was in the accident.
Liability insurance does not cover the physical or material damage of the driver. But that’s not all. This car insurance also does not cover losses such as theft, glass breakage, or disasters of any kind.
As for the cost, as previously stated, it will be significantly less than that of full-coverage insurance. Because of the minimal coverage, a more affordable price can be an advantage for some drivers. Some drivers choose the basic option of liability insurance and refine their coverage with a few other options.
What level of protection does full coverage insurance offer?
As mentioned before, full coverage insurance provides much greater coverage than a simple liability insurance. This type of car insurance protects the driver and his vehicle in case of an accident, whether he is responsible or not. In contrast to civil liability, this offer provides the best coverage for both bodily injury and material damage, with far more extensive guarantees.
Full coverage insurance can then protect the driver and his vehicle against vandalism, damages related to an accident, and even natural disasters. Different insurers offer other guarantees that work together to protect you as much as possible from claims.
Because of the extent of the guarantees of full coverage insurance, it is obvious that its rate will be largely higher than a civil liability policy. It is a decision to be made to drive your vehicle with peace of mind.
How do I make a final choice?
In order to make the right decision, you must first determine the type of vehicle you want to insure and how you will be using it. Full coverage insurance is probably not the best option if the vehicle is quite old. To insure a 10-year-old car or a car that is more than 15 years old, unless it is a collector’s item, it is better to avoid spending too much money on full coverage insurance. Otherwise, the driver will be paying a lot of money for his insurance compared to the value of his car and the repairs that will have to be done on it. Obviously, the higher the value of your vehicle, the pricier the full coverage insurance will be.
This choice can also be based on the use of the vehicle. If the vehicle is used very little, then liability coverage will probably be a good option. Then you must define your needs. If your needs correspond to the full coverage insurance formula, then there is no doubt that this is the one you need. However, if one or two guarantees seem important to you, it might be better to opt for liability insurance and add options.
While it may seem like a hassle to have to buy auto insurance, the reality is that not having it could be even more expensive. Our team here at Henry Insurance is a trusted resource for our clients. Give us a call at 225-927-0451 and we’ll be happy to help you make better decisions, no matter the circumstance.