Full Coverage Versus Liability Car Insurance
Reader’s Question:
I want to know the difference between a full coverage and liability.
Mia
Chicago IL
You need to listen very carefully when agents use the term full coverage. When you say Full Coverage, it means that your vehicle is covered by the required liability, collision and comprehensive coverage. It denotes that the value of any damage to your vehicle will be covered by the insurance company. The Liability coverage means that you are covered for any damage your car do to others, damage that you are responsible for and with out the liability coverage, the pay will be coming from your own pocket. This will amount from hundreds to thousand dollars depending on the damage you made. Collision coverage makes sure that you are covered for damages in your car that you are responsible for like getting in an accident while comprehensive coverage covers different kinds of damage that you do note have any control of like fire, theft, falling trees and even hitting animals.
Insurance companies offer different kinds of liability coverage. Some only covers body injury or damage to property but still this will depend on the insurance company. Most states will require both. This will allow you to be protected.
Liability coverage will pay for the injury and the damage expenses you caused other especially if you are responsible for these. The injuries will cover hospital bills and possible the lost wages of that person. The damage expenses or Property Damage will cover you if you caused damage to other property. Usually it’s another car that you got into an accident with but it could also be a house, a mailbox, or even a garden.
You must remember that most states allows driver to sue other drivers who injured them in car accidents and the liability coverage has limits. Your liability coverage may not be enough to cover you for the damages you cased other people or other properties.
Auto Insurance Comprehensive Coverage
Filed under: Uncategorized
Reader’s Question:
What are the factors affecting auto insurance comprehensive coverage?
Rachel
Boise ID
Auto insurance comprehensive coverage is by the most expensive and yet, the most common auto insurance coverage being used by almost all auto insurance agents and their clients. By definition, this coverage provides full coverage to your vehicle and passengers in the events of accident, fire, flood, theft and the likes. Going online is the best way in finding the best auto insurance comprehensive coverage. Oftentimes, the term “comprehensive” simply applies to thorough physical damage in the event of loss to the vehicle itself. This basically provides a thorough and pretty broad coverage. A broad range of coverage basically covers the final premium to be paid. You can adjust by picking and choosing, then requiting and eventually come up with a customized policy that fits you and hopefully, your pocket.
The law requires that you to carry a minimum liability. Most lenders who finance your vehicles insist in getting auto insurance comprehensive coverage and collision during the time they are financing your auto to protect their investment. Once the loan has been paid, you are not mandated to provide the coverage. Of all the factors available, this part is probably the steepest.
The cost of insurance is affected by age .If you are 25 and below and would want to apply for insurance, your insurer will likely provide you a costly insurance. Same with driving history, you have to keep a good and clean driving record in order to gain trust and for auto insurance companies to perceive you as responsible and less risky. The type of vehicle you are about to insure is also another factor. Sports utility vehicles are insured at a much higher cost compared to your mom’s old band wagon. This is due to the fact that with its immense size and weight, it has bigger tendencies of over rolling other smaller vehicles thus causing further wreckage not only to the vehicle, but also to its passengers and other properties. Therefore, it is wiser to check quotes online before you purchase a vehicle because in some cases, you could be in for a huge shock and may want to re-think your choices.