The pros and cons of full coverage insurance
Pros of Full liability coverage
1. Provides protection for both property damage and bodily injury
full liability coverage provides protection for both property damage and bodily injury in the event of an accident where you are found to be at fault. Property damage coverage helps pay for damages to other people's property, such as their car, while bodily injury coverage helps pay for medical expenses and other costs related to injuries that other people sustain in an accident you cause.
to keep in mind that liability coverage only covers damages and injuries that you are found to be responsible for, it does not cover your own damages or injuries. If you want coverage for your own vehicle and injuries, you would need to purchase additional coverage such as collision or comprehensive coverage, or personal injury protection.
full liability coverage provides protection for other parties in case of an accident where you are found to be at fault, covering property damage and bodily injury expenses. It is important to consider your own needs and coverage that fits your budget.
2. Can help protect assets in the event of a lawsuit
full liability coverage can help protect your assets in the event of a lawsuit. In the event that you cause an accident and the other party decides to sue you, full liability coverage can help pay for the costs associated with the lawsuit, such as legal fees and any settlement or judgment against you. This can help protect your assets, such as your home and savings, from being seized to pay for damages.
to note that liability coverage typically has limits, meaning that it will only pay up to a certain amount for damages and legal costs. If the damages exceed the limits of your liability coverage, you may be responsible for paying the difference out of your own pocket.
it is important to consider purchasing an umbrella policy, which provides an additional layer of liability coverage above the limits of your auto insurance policy. This can help provide extra protection for your assets in the event of a lawsuit.
full liability coverage can help protect your assets in the event of a lawsuit by providing coverage for legal fees and any settlement or judgment against you. However, it is important to keep in mind that it has limits and consider purchasing an umbrella policy for additional protection.
3. Required by law in most states
liability insurance is required by law in most states in the United States. Almost every state has a minimum liability coverage requirement that drivers must meet in order to legally operate a vehicle. These requirements vary by state, but they typically include coverage for bodily injury and property damage.
The minimum liability coverage required can be expressed in terms of limits, such as $25,000 per person/$50,000 per accident for bodily injury, and $25,000 for property damage. This means that the policy will pay up to $25,000 per person for injuries, and up to $50,000 per accident, and $25,000 for property damage in case of an accident that you cause.
to note that the minimum liability coverage required by law may not be enough to cover the full cost of damages in the event of an accident. So, it's a good idea to review your needs and purchase more coverage that suits your budget to ensure you have enough protection.
liability insurance is required by law in most states in the United States. Drivers must meet the minimum liability coverage required in order to legally operate a vehicle. These requirements vary by state, but they typically include coverage for bodily injury and property damage. However, it is important to consider purchasing additional coverage to ensure you have enough protection
4. May be required by lenders for financed or leased vehicles
lenders for financed or leased vehicles may require you to purchase full liability coverage insurance as a condition of the loan or lease agreement. This is because the lender or lessor has an interest in the vehicle and wants to make sure that it is properly protected in the event of an accident.
When you finance or lease a vehicle, you are borrowing the money to purchase it and the lender or lessor is the legal owner of the vehicle until the loan or lease is paid off. In the event of an accident, the lender or lessor wants to make sure that the vehicle is repaired or replaced so that they can continue to receive payments on the loan or lease.
lenders and lessors may require you to purchase full liability coverage insurance as well as collision and comprehensive coverage insurance. Collision coverage helps pay for damages to your vehicle if you are involved in an accident while comprehensive coverage helps pay for damages caused by non-collision events such as theft, vandalism, or natural disasters.
lenders and lessors for financed or leased vehicles may require you to purchase full liability coverage insurance as a condition of the loan or lease agreement. This is to ensure that the vehicle is properly protected in the event of an accident and that the lender or lessor can continue to receive payments on the loan or lease. Collision and comprehensive coverage may also be required.
Cons of Full liability coverage
1. Does not cover damages to your own vehicle
full liability coverage does not cover damages to your own vehicle. Liability coverage only provides protection for other parties in case of an accident where you are found to be at fault, covering property damage and bodily injury expenses. If you want coverage for your own vehicle, you would need to purchase additional coverage such as collision coverage.
Collision coverage helps pay for repairs or replacement of your vehicle if you are involved in an accident, regardless of who is at fault. This type of coverage is optional and not mandatory like liability coverage. It can be added to your policy to give you more protection and peace of mind. However, it also comes with an additional cost.
full liability coverage is a type of insurance that covers damages and injuries to other parties in case of an accident where you are found to be at fault. It does not cover damages to your own vehicle or injuries sustained by you and your passengers. To have coverage for your own vehicle, you would need to purchase collision coverage or other types of coverage.
2. Some states have lower limits of liability, that may not cover the full cost of damages
Some states have mandatory minimum limits of liability coverage that are lower than other states. These limits determine the maximum amount that the insurance company will pay for damages or injuries in the event of an accident where you are found to be at fault.
For example, some states may have mandatory minimum limits of $25,000 for bodily injury per person and $50,000 for bodily injury per accident, while other states may have higher mandatory minimum limits of $50,000 and $100,000 respectively.
In cases where the damages or injuries exceed the limits of your liability coverage, you may be responsible for paying the additional cost out of your own pocket. This is why it's important to consider purchasing higher limits of liability coverage, even if it's more expensive, to ensure that you have enough protection in case of an accident.
to note that some states also have lower limits of liability coverage for property damage, which would also not cover the full cost of damages in the case of an accident where you are found to be at fault.
some states have lower mandatory minimum limits of liability coverage than other states, which can potentially leave you responsible for paying the additional cost of damages or injuries in case of an accident where you are found to be at fault. It's important to consider purchasing higher limits of liability coverage, even if it's more expensive, to ensure that you have enough protection in case of an accident and also to check the regulations of your state before purchasing.
3. May be more expensive than other types of coverage
full liability coverage may be more expensive than other types of coverage, such as liability-only coverage. The cost of liability coverage is determined by a variety of factors, such as your driving record, the make and model of your vehicle, and the limits of coverage you choose.
Having higher limits of liability coverage, such as $100,000/$300,000, will generally cost more than having lower limits of coverage, such as $50,000/$100,000. This is because having higher limits means that the insurance company is taking on more risk and therefore charging more for the coverage.
some factors such as where you live, the traffic in your area, your age and gender, your credit score, and whether you have a history of claims can affect the cost of your liability coverage.
It's important to shop around and compare rates from different insurance companies to find the best coverage at a cost that fits your budget. Some insurance companies may offer discounts or other ways to save on liability coverage.
full liability coverage may be more expensive than other types of coverage. The cost of liability coverage is determined by a variety of factors such as limits, location, and driving history and it's important to shop around and compare rates from different insurance companies to find the best coverage at a cost that fits your budget.
4. Does not cover injuries to yourself or passengers in your own car
full liability coverage does not cover injuries to yourself or passengers in your own car. Liability coverage is designed to provide protection for other parties in case of an accident where you are found to be at fault, covering property damage and bodily injury expenses.
If you want coverage for injuries to yourself or passengers in your own car, you would need to purchase additional coverage such as Personal Injury Protection (PIP) or MedPay coverage. PIP coverage helps pay for medical expenses, lost wages, and other costs related to injuries you or your passengers sustain in an accident. MedPay coverage is similar to PIP, it covers medical expenses for you and your passengers in case of an accident.
It's important to note that not all states require PIP or Medpay, and some states only offer it as an option. Some states also have different rules and regulations, so it's important to check with your state's insurance department or with your insurance agent to see what is available in your area.
full liability coverage does not cover injuries to yourself or passengers in your own car. It provides protection for other parties in case of an accident where you are found to be at fault, covering property damage and bodily injury expenses. To have coverage for injuries to yourself or passengers in your own car, you would need to purchase additional coverage such as Personal Injury Protection (PIP) or MedPay. The availability and requirement of these coverages depend on the state you are living in.