11/08/2022
One aspect of car insurance I find can be confusing is the difference between "full coverage" and liability insurance. I will break down the 2 below:
Liability Insurance - This is the insurance that is required for you to carry by law. The two parts of liability insurance are bodily injury and property damage. Bodily injury covers the cost of an injury to another person (not in your car) up to your limits for an at fault accident. Property damage covers damage to other's property (car, house, etc..) up to your limits. Both of these coverages apply when you are at fault for the accident. Notice how these coverages do not apply to you or your vehicle(s)
Full Coverage - This is an optional coverage, and is not required by law. There are two parts to full coverage - Comprehensive (or other than collision) and Collision. Comprehensive covers your vehicle in case of fire, theft, vandalism, animal strike and also a cracked windshield. Collision covers the repairs to your car in an at fault accident. Both comprehensive and collision will include a deductible typically ranging from $100 to $1,500. So if you have a $250 deductible, and a $1,500 loss, you would pay the first $250 and the insurance company would pay the remaining $1,250.
There is more to full coverage and liability insurance but this is just a basic break down. Feel free to message me if you have any questions or general personal insurance questions.
