Auto Insurance Policies: Full-Coverage or Liability-Only?

When it comes to auto insurance, it can be difficult to know what type of policy to purchase.  The law says that everyone driving must have some kind of coverage.  But what type of policy is best for your needs?  Let’s take a quick look at what Full-Coverage or Liability-Only polices do for you.

Liability insurance is required by law.  It is a minimal policy.  Because of its limitations, liability-only insurance usually costs much less than Full-Coverage policies.  Liability-Only does not repair or replace the value of your vehicle.  It only covers you in the event of an injury, injuries to other people in the accident or damage to property during the accident.   Each state sets a minimum requirement to purchase for you to be legal on the road, but that amount may be far less than recommended.

Full-Coverage insurance is optional.  Full-coverage does exactly what its name implies- It includes liability, collision coverage and comprehensive coverage.  Comprehensive protects you when anything happens to your vehicle that is not your fault, from trees falling on your parked car to fire, theft and hail damage.  Collision coverage takes care of your vehicle in an accident.  It also pays off your loan should your car be totaled, which is why most finance companies require you to carry it.

Add on items, like towing, roadside assistance and rental-car coverage may also be available.

In general, if your vehicle is close to ten years old, you might be better off saving the money you would spend on full-coverage and just repairing your vehicle on your own.  Just be aware that the costs of your accident can add up quickly and exceed your liability-only maximum, leaving you with a heavy bill to foot even after insurance.

Give Allchoice Insurance a call and let us help you get the right coverage for your needs!

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