Shopping around for auto insurance can get confusing. Determining the right coverage can be difficult with all the industry jargon. One of the first decisions you will have to make is whether to go with liability insurance or full coverage.
Here’s what differentiates liability insurance from full coverage.
Liability insurance offers coverage for bodily injuries, property damage, and other losses you may cause behind the wheel.
It will pay for the other parties medical treatments.
In most states, it is mandatory for drivers to carry liability insurance.
Full coverage provides you with liability coverage and also collision and comprehensive insurance.
Collision insurance will pay for the damage that your own car sustains after a collision event.
Comprehensive insurance will pay for the damage that your car sustains outside of a collision event.
Comprehensive coverage is for damage to your car by an act of vandalism or extreme weather events.
Full coverage is recommended but is more expensive than simply securing liability insurance. It ensures that you don’t have to pay out-of-pocket every time your car is damaged.