In the United States, the average driver pays between 2,000-2,500 a year on car insurance. Given how much folks pay for automobile insurance, it’s no surprise that they often look for ways to save money and keep costs low.
But while there are legitimate ways to get discounts and cut costs on car insurance, there are also approaches that really don’t pay off in the end. While taking out a policy with lesser coverage may result in lower monthly payments, it can lead to huge financial losses in the long run.
One risky way drivers try to save on auto insurance is by dropping full coverage in favor of liability. Once you understand the difference in liability vs full coverage, you’ll see why this isn’t necessarily a great idea.
Liability vs Full Coverage: What’s the Difference
Before we explore the pros and cons of liability and full coverage insurance, let’s step back and take a closer look at what each type of coverage provides.
In most places in the United States, drivers are required to carry a minimum amount of liability coverage. Your liability coverage covers property and bodily injury damage in any accident you are at fault, or held liable, for.
For instance, if you are in a collision with another vehicle, liability coverage can pay for injuries that you, the other driver, or passengers sustain. Or, if you crash your car into someone else’s property, it can cover the cost of replacing it.
The difference with full coverage comes into play when dealing with vehicle damage to your car in single-car collisions. For instance, if you drive your car into the curb and damage the rim, liability coverage won’t cover that. Full coverage, however, will.
Full coverage can also address other non-collision related issues, such as if your car is stolen, or damaged during a storm.
Why Drop Full Coverage?
Given the limitations of liability, why do some people opt to forgo full coverage?
The logic usually goes something like this. If you drive an old vehicle, and you damage it in a single car collision, you’re likely not to get the damage fixed anyway because the value of the car is so low.
At the end of the day, however, full coverage will still protect you, even if you don’t have an expensive car. This is because if your car is completely destroyed by fire or a tree branch falling on it, you will still get some compensation through your full coverage. Even a modest payout in this situation is better than nothing, which is what you would get if you opted for just liability.
Get the Coverage You Need Today
Given this overview of liability vs full coverage, it’s easy to see that opting for full coverage is the best choice if you want your interests fully protected.
Wondering what full coverage insurance will cost? Contact us today for a free quote so we can help you find a policy that fits your budget.