Car insurance can be a tricky subject for anyone. How do you know whether your car needs liability only or full coverage? Do you know the difference? Has anyone ever explained it to you? Here are some key points about what each means and which makes the most sense for your car.

Liability only simply means that you are only insuring the bodily injury or property damage of someone ELSE. If you’re in an accident that is your fault your insurance will pay for the other party’s vehicle and their possible injuries. You would be on the hook to repair or replace your vehicle. However, if you’re in an accident that is the other party’s fault, THEIR insurance must pay for your damages to your car and potential injuries.

Full coverage means you are insuring for both the other person’s injuries and damages as well as for your own car’s potential damages. Keep in mind that there is are deductibles attached to this full coverage option that will come into play in the event of an accident. Also, it is important to note that this option is more expensive than liability only because the insurance company is taking on more risk in the event of an accident. Full coverage may also mean that you carry towing, rental reimbursement, and loan/lease gap coverage, but not all agents would consider that as a part of the full coverage option. Make sure you check on that prior to insuring your car.

Now that you know what the difference between liability only and full coverage is; how do you decide which one you should have? This can be complicated and in most cases it really comes down to personal preference.

Generally speaking, if your car is older (more than 10 years old) and has high mileage, you may want to consider having liability only. By the time you would pay your deductible and the extra cost for insurance, it might not be worth it to have full coverage on an older car.

Full coverage, on the other hand, is required when you have a loan on the car or it is leased. The bank will require you to carry this coverage so their loan will be repaid in the event you total the car in an accident. Even if the car isn’t leased or financed, this might be the right coverage for you if your car is newer and has low mileage.

Your insurance agent should be able to offer their advice on this subject by going over the items mentioned above. Feel free to call us at 440-236-5041 or email us at info@frankclarkeagency.com and we would be more than happy to offer our own advice. You can also complete the form below for a car insurance quote.  Just remember, though, the decision is ultimately yours.