A major dilemma when you step out to buy auto insurance for your car is which
coverage to buy. With so many companies standing with variety of coverage, it
really becomes confusing while choosing an auto insurance coverage for you. Well
there are certain rules and regulations in each state, which clearly defines
minimum insurance cover to have before driving out. So in order to drive legally
and safely in every state you need some form of liability insurance coverage.
Liability coverage covers you in case of an accident happening by your fault. It
covers the bodily injury and property damage that you or drivers of your car
inflict on others. Liability insurance is normally in three split limits like
25/50/15 where first number denotes the amount insurance company will pay for
bodily injury to one person. The second number indicates the amount that will be
paid to all injured persons in total and the third denotes the cover for
property damage. All these numbers are in thousand dollars and are the maximum
amounts that will be paid by the insurance company if a claim is filed.
Another type of liability coverage limit is a “single” limit. If a limit is
stated in the policy as $300,000, this would be the maximum paid for all
liability claims per accident. Here are some conditions when one can buy
liability insurance.
One should choose liability coverage if they are not paying the loan of their
car. Also if the car is old and has been in use for some time now. If your state
allows, “carry only liability” then it might be good option to save. When you
have an older, modestly priced or inexpensive car. Lastly, when you are
financially in a tight situation and cannot afford higher premiums. But a word
of caution, remember that you will not be able to file a claim with your insurer
for a damage done to your car in an accident or due to any other cause.
Full coverage is at the other side of car insurance spectrum, offering you
coverage in many different situations. Note that it is many not every situation.
“FULL” coverage is just a term used in insurance to refer to any physical damage
coverage caused in an automobile accident. It generally comprises of
comprehensive and collision coverage. Comprehensive is obligatory to buy but
collision is optional. It covers you against any damages to your automobile due
to vandalism, fire, glass breakage, or theft. Collision coverage generally
covers any damage to your automobile due to a collision with any other object.
Full coverage insurance policy is usually the most expensive but also the most
protective insurance policy that you can buy. Situations under which one can use
full coverage are variable. Many insurance companies require you to buy full
coverage if you are paying a loan or rent for your car. It can also be a good
option if you have just bought a new car or you have a few young blood teenaged
drivers at home. If you have not built upon a safe driving record until now then
the full coverage might come in handy. Also if you have a passion or a job which
requires you travel more across states, then the added benefits of full coverage
like country-wide claim service, 24 hour road-side assistance programs and legal
representation for accident claims will cover you most.
Buying full or liability only coverage will depend on your personal situation
and needs. However a little bit of research over insurance requirements in your
state, your car’s current worth, various insurance companies and your financial
situation would help you fetch a good deal.
