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Full Coverage vs. Liability Only, that is the question. Millions of Americans face this difficult question every day, and wonder how to get more affordable auto insurance. First off, what is the main difference between the two? Full Coverage is more comprehensive coverage, and pays to fix your vehicle if you are the cause of an accident. Liability Only protects just the cars and/or people that were injured as a result of your negligence. Obviously, the former is clearly much more extensive and as a result more expensive than the latter. So when do you need the more expensive coverage? Below are a few examples of when it is either required or very smart to get maximum protection for your vehicle.
You need Full Coverage if...
You have a loan on your car. If you don't own your vehicle outright, you are required by the company loaning you the vehicle to carry extensive insurance. Many times the company will even set a limit on how high your deductibles can be. How can they do this? Well, until the car is paid off, you technically don't own it. The company loaning you the car bought it, and is letting you drive it until you can pay them enough to take it over.
Young drivers are driving your car. Hundreds of studies have been done and each and every one of them shows that young drivers get in more accidents than those who have been driving for years. That is one of the reasons why adding a young driver to your policy can be so darn expensive. That is also one of the reasons why I recommend you carry full coverage on your car if you have anyone driving your cars that is 21 or younger. Affordable auto insurance is important to have, but not if it means you will end up with a car that has the whole front side smashed in.
You have a new, expensive, paid off car. Although not required if your car is paid off, it is probably in your best interest to keep the coverage there if you have a very expensive car. Even if you have never been in an accident before, I would recommend keeping the coverage. All it takes is one small lapse in judgment and your car could be totaled. Do you have $30,000 to buy a new vehicle? If you do, then this may not apply to you. If you don't, however, keeping extensive coverage on your new expensive vehicle is a good idea.
Hopefully that gives you an idea of what to consider when deciding what type of insurance protection you should purchase. Once you know what is right for you, you are better prepared to look for the most affordable auto insurance you can find. Good luck!
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