Full Coverage vs. Liability Insurance: Which Do You Really Need?

Understanding the differences between liability and full coverage insurance can help you make an informed decision to best suits your needs and budget.

What Is Liability Insurance?

Liability insurance is the most basic type of car insurance required by law in most states. Texas drivers must be able to prove they can pay for damage and injuries they may cause in an accident. Most drivers do this by buying auto liability insurance coverage.

Auto liability insurance may help cover the costs associated with injuries and damage you cause to other people and their property in an accident. However, it does not cover your injuries or damage to your vehicle.

What Is Full Coverage Insurance?

Full coverage insurance is a combination of different types of coverage that provide more comprehensive protection. It typically includes liability insurance, collision insurance and comprehensive insurance. Your agent may recommend adding uninsured/underinsured motorist coverage, as well.

Collision insurance may help pay to repair or replace your car if it’s damaged in a collision with another vehicle or object. Comprehensive insurance may help cover damage to your car caused by events other than collisions, such as theft, vandalism, natural disasters and falling objects.

Uninsured/underinsured motorist coverage may help provide financial protection if you’re involved in an accident with an at-fault driver who doesn’t have enough insurance to cover the damage or who is uninsured.

How Much Auto Insurance Do You Need?

The decision between full coverage and liability insurance depends on several factors, including your financial situation, the value of your car and your risk tolerance. If you lease or finance a vehicle, your lienholder probably requires full coverage auto insurance.

Your agent can help determine how much auto insurance coverage is appropriate for your situation.

Contact Us

Contact Vela Auto Insurance in Houston, Texas, for an auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.