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Liability vs Full Coverage

If you are clueless about how liability and full coverage auto insurance are different, the liability vs full coverage auto insurance comparison presented in this article will clear out all your doubts.
When shopping for auto insurance, there are several options in front of you to choose from. Insurance companies have come up with many innovative auto insurance products that cover almost the entire gamut of risks that come as a part and parcel of car driving. The one thing about auto insurance or any other insurance product, that you need to know about is the exact range of coverage which it offers, besides the minimum deductible and premium amount.

Liability Vs Full Coverage Auto Insurance Comparison

Three of the prime features, which you need to check while shopping for auto insurance is the quoted compensation amount, premium amount and the range of coverage offered. In any US state and in most countries worldwide, a liability insurance coverage is compulsory. However, there is no compulsion, when it comes to full coverage auto insurance. It is an optional choice that a car owner may go for. Let me explain what are the coverage details for both the policies in the next section.

Difference in Cover Offered

As the name itself suggests, liability insurance only covers the damages to the vehicles you may accidentally ram into, but it doesn't pay for the damages of your own car. It is the minimum auto insurance that is required to have by state laws in USA. Liability insurance cover may be adequate for old cars that are reaching their end of their service life, but not a good option when you are buying a new car.

Compared to liability insurance, a full coverage auto insurance policy offers you much more. Not only does it have liability insurance, but it also provides you with collision insurance and comprehensive insurance which offers cover damages inflicted on your car by natural disasters and other non-accidental causes.

The collision insurance pays for your own car repairs in the event of an accident. It is a crucial component which turns out to be very useful. Other than that, under comprehensive insurance, any damages inflicted on your car due to natural disasters or fire accidents etc, are paid for.

Price Difference

If you check out the full coverage auto insurance quotes and compare them with liability insurance quotes, the premium amount for the former is obviously greater. Considering that a typical full coverage auto insurance policy offers collision coverage, comprehensive coverage as well as liability insurance, its cost is bound to be higher.

Go for the best insurance quotes you get, that offer all the above mentioned components at a reasonable premium cost. If you have bought a used car and don't see it as a long term investment, it's best to opt for a basic liability insurance cover. This concludes our full coverage auto insurance vs liability insurance comparison.

As discussed previously, a full coverage auto insurance comes with a liability cover and hence it is the best choice to go for. Especially if it's a new car, a full coverage auto insurance cover should be chosen. Instead of going for a cheap full coverage auto insurance (which has high deductibles), opt for one which provides adequate coverage, even though the premium is high.

Look for insurance policies which also offer a breakdown cover, to take care of emergency repairs that crop up periodically. Hope that after going through this comparison, deciding which is the better option to go for is a no-brainer!
By Omkar Phatak
Published: 2/24/2011
Bouquets and Brickbats
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